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Creative Media & Community Trust Corporation Reports 2022 Second Quarter Results

Creative Media & Community Trust Corporation (NASDAQ: CMCT and TASE: CMCT-L) (“we”, “our”, “CMCT”, or the “Company”), today reported operating results for the three and six months ended June 30, 2022.

Second Quarter 2022 Highlights

Real Estate Portfolio

  • Stabilized office portfolio(1) was 87.2% leased.
  • Executed 39,392 square feet of leases with terms longer than 12 months.
  • Purchased a Jefferson Park, Los Angeles property for $5.7 million. The Company intends to develop approximately 114 residential units.

Financial Results

  • Net loss attributable to common stockholders of $2.3 million, or $0.10 per diluted share.
  • Funds from operations (“FFO”) attributable to common stockholders(3) was $2.6 million, or $0.11 per diluted share.
  • Core FFO attributable to common stockholders(4) was $2.7 million, or $0.11 per diluted share

Management Commentary

“Our second quarter was highlighted by increased leasing activity and a significant year over year increase in our FFO that was driven by improving results at our one hotel and a large reduction in our cost structure,” said David Thompson, Chief Executive Officer of Creative Media & Community Trust Corporation. “In August 2022, we signed a 20-year lease for approximately 18,000 square feet of retail space at our Beverly Hills office building, increasing the leased percentage at the property to over 90%.”

“CMCT is focused on investing in premier multifamily and creative office assets, and we have assembled an attractive development pipeline. We intend to leverage our distribution and development capabilities to execute on this pipeline using an asset-light approach, where we raise third party capital on an asset level basis, maintain a minority interest and earn a percentage of the profits.

“We believe this is a compelling model for the Company that will contribute to strong returns on invested capital. We anticipate launching our first co-investment opportunity under this structure over the next few months.”

Second Quarter 2022 Results

Real Estate Portfolio

As of June 30, 2022, our real estate portfolio consisted of 17 assets, all of which were fee-simple properties, including one office property which the Company has an approximate 44% ownership interest through its investment in an unconsolidated joint venture. The portfolio included twelve office properties and three development sites (one being used as a parking lot), totaling approximately 1.4 million rentable square feet, and one 503-room hotel with an ancillary parking garage.

Financial Results

Net loss attributable to common stockholders was $2.3 million, or $0.10 per diluted share of common stock, for the three months ended June 30, 2022, compared to a net loss attributable to common stockholders of $4.2 million, or $0.28 per diluted share of common stock, for the same period in 2021.

FFO attributable to common stockholders(3) was $2.6 million, or $0.11 per diluted share of common stock, for the three months ended June 30, 2022, compared to $859,000, or $0.06 per diluted share of common stock, for the same period in 2021.

Core FFO attributable to common stockholders(4) was $2.7 million, or $0.11 per diluted share of common stock, for the three months ended June 30, 2022, compared to $1.0 million, or $0.06 per diluted share of common stock, for the same period in 2021. The increase in FFO and Core FFO is primarily attributable to an increase in office segment net operating income of $314,000, an increase in hotel segment net operating income of $3.2 million, a decrease in asset management fees of $1.3 million and a decrease in provision for income taxes of $675,000, partially offset by a decrease in lending segment net operating income of $3.4 million and an increase in redeemable preferred stock dividends declared or accumulated of $540,000.

Segment Information

Our reportable segments during the three months ended June 30, 2022 and 2021 consisted of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. Total Segment net operating income (“NOI”)(5) was $12.8 million for the three months ended June 30, 2022, compared to $12.6 million for the same period in 2021.

Office

Same-Store

Same-store(2) office Segment NOI(5) was $7.4 million for both the three months ended June 30, 2022 and 2021, while same-store(1) office Cash NOI(6) increased to $7.0 million for the three months ended June 30, 2022 compared to $6.9 million in the same period in 2021.

At June 30, 2022, the Company’s same-store(2) office portfolio was 78.3% occupied, an increase of 30 basis points year-over-year on a same-store(2) basis, and 79.1% leased, an increase of 40 basis points year-over-year on a same-store(2) basis. The annualized rent per occupied square foot(7) on a same-store(2) basis was $54.83 at June 30, 2022 compared to $52.32 at June 30, 2021. During the three months ended June 30, 2022, the Company executed 39,392 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio.

Total

Office Segment NOI(5) increased to $7.9 million for the three months ended June 30, 2022, from $7.6 million for the same period in 2021. The increase is primarily due to income from the Company’s unconsolidated joint venture entity which is included in non-same-store office net operating income. The Company made its investment in the unconsolidated joint venture, which owns an office property and multifamily development site in Los Angeles, California, during the first quarter of 2022.

Hotel

Hotel Segment NOI(5) increased to income of $3.2 million for the three months ended June 30, 2022, from a loss of $2,000 for the same period in 2021, due to an increase in occupancy and average daily rate as a result of the hospitality industry recovering from the impact of COVID-19.

 

 

Three Months Ended June 30,

 

 

2022

 

2021

Occupancy

 

 

77.5

%

 

 

47.7

%

Average daily rate(a)

 

$

175.67

 

 

$

122.33

 

Revenue per available room(b)

 

$

136.09

 

 

$

58.31

 

______________________

(a)

Calculated as trailing 3-month room revenue divided by the number of rooms occupied.

(b)

Calculated as trailing 3-month room revenue divided by the number of available rooms.

Lending

Our lending segment primarily consists of our SBA 7(a) lending platform, which is a national lender that primarily originates loans to small businesses in the hospitality industry. Lending Segment NOI(5) was $1.7 million for the three months ended June 30, 2022, compared to $5.0 million for the same period in 2021. The decrease was primarily due to lower premium income as a result of lower loan sale volume and a reduction in the market premium achieved during the three months ended June 30, 2022, compared to the three months ended June 30, 2021. We expect lending revenue to be lower materially for the second half of 2022, when compared to the second half of 2021 because of lower loan origination volume compared to 2021, a year when the SBA temporarily increased guaranteed percentages for SBA 7(a) loan originations, decreased demand for variable rate loans in the current inflationary economic environment, which we believe tends to lead borrowers to seek fixed rate loan products, and lower revenue from servicing assets retained for servicing the government guaranteed portion of our loans due to expected increases in prepayment. These factors were partially offset by acceleration of income-recognition from any principal discounts recorded on our loans due to increased prepayment.

Debt and Equity

During the three months ended June 30, 2022, we issued 302,136 shares of Series A Preferred Stock for aggregate net proceeds of $6.9 million. In June 2022, we began conducting a continuous public offering with respect to our Series A1 Preferred stock. During the three months ended June 30, 2022, we issued 192,440 shares of Series A1 Preferred Stock for aggregate net proceeds of $4.4 million. Net proceeds represent gross proceeds offset by costs specifically identifiable to the offering of Series A Preferred Stock and Series A1 Preferred Stock, such as commissions, dealer manager fees and other offering fees and expenses. Additionally, during the three months ended June 30, 2022, we had net incremental borrowings of $15.0 million on our revolving credit facility.

In July 2022, we issued 1,305,492 shares of our Series A1 Preferred Stock for aggregate net proceeds of $29.9 million.

In May 2022, CMCT’s Board of Directors authorized a repurchase program of up to $10 million of the Company’s common stock. During the three months ended June 30, 2022, CMCT repurchased 41,374 shares at an average price of $7.32 per share.

Dividends

On June 10, 2022, we declared a quarterly cash dividend of $0.0850 per share of our common stock, which was paid on July 5, 2022 to stockholders of record at the close of business on June 20, 2022.

On June 10, 2022, we declared a quarterly cash dividend of $0.34375 per share of our Series A Preferred Stock for the third quarter of 2022, payable as follows: $0.114583 per share to be paid on August 15, 2022 to Series A Preferred Stockholders of record on August 5, 2022; $0.114583 per share to be paid on September 15, 2022 to Series A Preferred Stockholders of record on September 5, 2022; and $0.114583 per share to be paid on October 17, 2022 to Series A Preferred Stockholders of record on October 5, 2022.

On June 10, 2022, we declared a quarterly cash dividend of $0.375 per share of our Series A1 Preferred Stock for the second and third quarter of 2022, payable as follows: (1) with respect to the second quarter, $0.125 per share was paid on July 15, 2022 to Series A1 Preferred Stockholders of record on July 5, 2022 and (ii) with respect to the third quarter, $0.125 per share to be paid on August 15 , 2022 to Series A1 Preferred Stockholders of record on August 5, 2022; $0.125 per share to be paid on September 15, 2022 to Series A1 Preferred Stockholders of record on September 5, 2022; and $0.125 per share to be paid on October 17, 2022 to Series A1 Preferred Stockholders of record on October 5, 2022.

On June 10, 2022, we declared a quarterly cash dividend of $0.353125 per share of our Series D Preferred Stock for the third quarter of 2022, payable as follows: $0.117708 per share to be paid on August 15, 2022 to Series D Preferred Stockholders of record on August 5, 2022; $0.117708 per share to be paid on September 15, 2022 to Series D Preferred Stockholders of record on September 5, 2022; and $0.117708 per share to be paid on October 17, 2022 to Series D Preferred Stockholders of record on July 5, 2022.

Acquisitions

In February 2022, CMCT acquired 3101 S. Western in Jefferson Park, Los Angeles for $2.3 million. CMCT intends to entitle the property and develop approximately 45 residential units starting in 2023. In May 2022, CMCT acquired 3022 S Western, an adjacent site, for $5.7 million. CMCT intends to entitle the property and develop 114 residential units starting in 2024.

About the Data

Descriptions of certain performance measures, including Segment NOI, Cash NOI, FFO attributable to common stockholders, and Core FFO are provided below. Refer to the subsequent tables for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.

(1)

Stabilized office portfolio: represents office properties where occupancy was not impacted by a redevelopment or repositioning during the period.

 

(2)

Same-store properties: are properties that we have owned and operated in a consistent manner and reported in our consolidated results during the entire span of the periods being reported. We excluded from our same-store property set this quarter any properties (i) acquired on or after April 1, 2021; (ii) sold or otherwise removed from our consolidated financial statements on or before June 30, 2022; or (iii) that underwent a major repositioning project we believed significantly affected its results at any point during the period commencing on April 1, 2021 and ending on June 30, 2022. When determining our same-store properties as of June 30, 2022, one property was excluded pursuant to (i) and (iii) above and no properties were excluded pursuant to (ii) above.

 

(3)

FFO attributable to common stockholders: represents net income (loss) attributable to common stockholders, computed in accordance with GAAP, which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gain (or loss) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (the “NAREIT”). See ‘Core FFO’ definition below for discussion of the benefits and limitations of FFO as a supplemental measure of operating performance.

 

(4)

Core FFO attributable to common stockholders (“Core FFO”): represents FFO attributable to common stockholders (computed as described above), excluding gain (loss) on early extinguishment of debt, redeemable preferred stock deemed dividends, redeemable preferred stock redemptions, gain (loss) on termination of interest rate swaps, and transaction costs.

 

 

We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. In addition, we believe that Core FFO is a useful metric for securities analysts, investors and other interested parties in the evaluation of our Company as it excludes from FFO the effect of certain amounts that we believe are non-recurring, are non-operating in nature as they relate to the manner in which we finance our operations, or transactions outside of the ordinary course of business.

 

 

Like any metric, FFO and Core FFO should not be used as the only measure of our performance because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, and Core FFO excludes amounts incurred in connection with non-recurring special projects, prepaying or defeasing our debt, repurchasing our preferred stock, and adjusting the carrying value of our preferred stock classified in temporary equity to its redemption value, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO and Core FFO in the same manner as we do, or at all; accordingly, our FFO and Core FFO may not be comparable to the FFOs and Core FFOs of other REITs. Therefore, FFO and Core FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a supplement to or substitute measure for cash flows from operating activities computed in accordance with GAAP. FFO and Core FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. FFO and Core FFO per share for the year-to-date period may differ from the sum of quarterly FFO and Core FFO per share amounts due to the required method for computing per share amounts for the respective periods. In addition, FFO and Core FFO per share is calculated independently for each component and may not be additive due to rounding.

 

(5)

Segment NOI: for our real estate segments represents rental and other property income and expense reimbursements less property related expenses and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and benefit (provision) for income taxes. For our lending segment, Segment NOI represents interest income net of interest expense and general overhead expenses. See ‘Cash NOI’ definition below for discussion of the benefits and limitations of Segment NOI as a supplemental measure of operating performance.

 

(6)

Cash NOI: for our real estate segments, represents Segment NOI adjusted to exclude the effect of the straight lining of rents, acquired above/below market lease amortization and other adjustments required by generally accepted accounting principles (“GAAP”). For our lending segment, there is no distinction between Cash NOI and Segment NOI. We also evaluate the operating performance and financial results of our operating segments using cash basis NOI excluding lease termination income, or “Cash NOI excluding lease termination income”.

 

 

Segment NOI and Cash NOI are not measures of operating results or cash flows from operating activities as measured by GAAP and should not be considered alternatives to income from continuing operations, or to cash flows as a measure of liquidity, or as an indication of our performance or of our ability to pay dividends. Companies may not calculate Segment NOI or Cash NOI in the same manner. We consider Segment NOI and Cash NOI to be useful performance measures to investors and management because, when compared across periods, they reflect the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. Additionally, we believe that Cash NOI is helpful to investors because it eliminates straight line rent and other non-cash adjustments to revenue and expenses.

 

(7)

Annualized rent per occupied square foot: represents gross monthly base rent under leases commenced as of the specified periods, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent. Annualized rent for certain office properties includes rent attributable to retail.

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which are intended to be covered by the safe harbors created thereby. Such forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “project,” “target,” “expect,” “intend,” “might,” “believe,” “anticipate,” “estimate,” “could,” “would,” “continue,” “pursue,” “potential,” “forecast,” “seek,” “plan,” or “should,” or “goal” or the negative thereof or other variations or similar words or phrases. Such forward-looking statements include, among others, statements about CMCT’s plans and objectives relating to future growth and outlook. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the scope, severity and duration of the current pandemic of COVID-19, and actions taken to contain the pandemic or mitigate its impact,(ii) the adverse effect of COVID-19 on the financial condition, results of operations, cash flows and performance of CMCT and its tenants and business partners, the real estate market and the global economy and financial markets, among others, (iii) the timing, form, and operational effects of CMCT’s development activities, (iv) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (v) fluctuations in market rents, including as a result of COVID-19, (vi) the effects of inflation and higher interest rates on the operations and profitability of CMCT and (vii) general economic, market and other conditions. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed under the section “Risk Factors” in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2021. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT’s control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT’s objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made.

CREATIVE MEDIA & TRUST CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited and in thousands, except share and per share amounts)

 

 

 

 

 

 

 

June 30, 2022

 

December 31, 2021

ASSETS

 

 

 

 

Investments in real estate, net

 

$

502,607

 

 

$

497,984

 

Investment in unconsolidated entity - at fair value

 

 

22,788

 

 

 

 

Cash and cash equivalents

 

 

16,480

 

 

 

22,311

 

Restricted cash

 

 

11,208

 

 

 

11,340

 

Loans receivable, net

 

 

68,540

 

 

 

73,543

 

Accounts receivable, net

 

 

3,353

 

 

 

3,396

 

Deferred rent receivable and charges, net

 

 

36,474

 

 

 

36,095

 

Other intangible assets, net

 

 

4,812

 

 

 

5,251

 

Loan servicing asset, net and other assets

 

 

11,483

 

 

 

10,946

 

TOTAL ASSETS

 

$

677,745

 

 

$

660,866

 

LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY

 

 

 

 

LIABILITIES:

 

 

 

 

Debt, net

 

$

207,816

 

 

$

201,145

 

Accounts payable and accrued expenses

 

 

19,195

 

 

 

26,751

 

Intangible liabilities, net

 

 

108

 

 

 

237

 

Due to related parties

 

 

7,013

 

 

 

4,541

 

Other liabilities

 

 

20,471

 

 

 

16,861

 

Total liabilities

 

 

254,603

 

 

 

249,535

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

REDEEMABLE PREFERRED STOCK: Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 shares authorized; 1,565,703 and 1,565,703 shares issued and outstanding, respectively, as of June 30, 2022 and 1,633,965 and 1,631,965 shares issued and outstanding, respectively, as of December 31, 2021; liquidation preference of $25.00 per share, subject to adjustment

 

 

36,136

 

 

 

37,782

 

EQUITY:

 

 

 

 

Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 shares authorized; 7,254,635 and 6,893,774 shares issued and outstanding, respectively, as of June 30, 2022 and 6,492,632 and 6,271,337 shares issued and outstanding, respectively, as of December 31, 2021; liquidation preference of $25.00 per share, subject to adjustment

 

 

172,176

 

 

 

156,431

 

Series A1 cumulative redeemable preferred stock, $0.001 par value; 28,000,000 shares authorized; 192,440 shares issued and outstanding as of June 30, 2022 and no shares issued or outstanding as of December 31, 2021; liquidation preference of $25.00 per share, subject to adjustment

 

 

4,770

 

 

 

 

Series D cumulative redeemable preferred stock, $0.001 par value; 27,000,000 shares authorized; 56,857 shares issued and outstanding as of June 30, 2022 and 56,857 shares issued and outstanding as of December 31, 2021; liquidation preference of $25.00 per share, subject to adjustment

 

 

1,396

 

 

 

1,396

 

Series L cumulative redeemable preferred stock, $0.001 par value; 9,000,000 shares authorized; 8,080,740 and 5,387,160 shares issued and outstanding, respectively, as of June 30, 2022 and December 31, 2021; liquidation preference of $28.37 per share, subject to adjustment

 

 

152,834

 

 

 

152,834

 

Common stock, $0.001 par value; 900,000,000 shares authorized; 23,358,941 shares issued and outstanding as of June 30, 2022 and 23,369,331 shares issued and outstanding as of December 31, 2021.

 

 

24

 

 

 

24

 

Additional paid-in capital

 

 

864,602

 

 

 

866,746

 

Distributions in excess of earnings

 

 

(809,157

)

 

 

(804,227

)

Total stockholders’ equity

 

 

386,645

 

 

 

373,204

 

Noncontrolling interests

 

 

361

 

 

 

345

 

Total equity

 

 

387,006

 

 

 

373,549

 

TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY

 

$

677,745

 

 

$

660,866

 

CREATIVE MEDIA & TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(Unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

2022

 

2021

REVENUES:

 

 

 

 

 

 

 

 

Rental and other property income

 

$

14,194

 

 

$

13,309

 

 

$

28,290

 

 

$

26,658

 

Hotel income

 

 

9,107

 

 

 

3,130

 

 

 

16,511

 

 

 

4,862

 

Interest and other income

 

 

3,102

 

 

 

6,234

 

 

 

6,384

 

 

 

10,032

 

Total Revenues

 

 

26,403

 

 

 

22,673

 

 

 

51,185

 

 

 

41,552

 

EXPENSES:

 

 

 

 

 

 

 

 

Rental and other property operating

 

 

12,731

 

 

 

9,115

 

 

 

24,223

 

 

 

17,405

 

Asset management and other fees to related parties

 

 

920

 

 

 

2,260

 

 

 

1,841

 

 

 

4,519

 

Expense reimbursements to related parties—corporate

 

 

526

 

 

 

454

 

 

 

948

 

 

 

1,059

 

Expense reimbursements to related parties—lending segment

 

 

604

 

 

 

433

 

 

 

1,073

 

 

 

1,164

 

Interest

 

 

2,403

 

 

 

2,673

 

 

 

4,573

 

 

 

5,305

 

General and administrative

 

 

1,253

 

 

 

1,146

 

 

 

3,068

 

 

 

3,768

 

Depreciation and amortization

 

 

4,974

 

 

 

5,069

 

 

 

9,978

 

 

 

10,106

 

Total Expenses

 

 

23,411

 

 

 

21,150

 

 

 

45,704

 

 

 

43,326

 

Income from unconsolidated entity

 

 

260

 

 

 

 

 

 

380

 

 

 

 

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

 

 

3,252

 

 

 

1,523

 

 

 

5,861

 

 

 

(1,774

)

Provision for income taxes

 

 

321

 

 

 

996

 

 

 

628

 

 

 

1,370

 

NET INCOME (LOSS)

 

 

2,931

 

 

 

527

 

 

 

5,233

 

 

 

(3,144

)

Net (income) loss attributable to noncontrolling interests

 

 

(9

)

 

 

3

 

 

 

(14

)

 

 

4

 

NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

 

 

2,922

 

 

 

530

 

 

 

5,219

 

 

 

(3,140

)

Redeemable preferred stock dividends declared or accumulated

 

 

(5,161

)

 

 

(4,621

)

 

 

(10,179

)

 

 

(9,087

)

Redeemable preferred stock deemed dividends

 

 

(4

)

 

 

(106

)

 

 

(19

)

 

 

(163

)

Redeemable preferred stock redemptions

 

 

(106

)

 

 

(13

)

 

 

(181

)

 

 

(26

)

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

(2,349

)

 

$

(4,210

)

 

$

(5,160

)

 

$

(12,416

)

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE:

 

 

 

 

 

 

 

 

Basic

 

$

(0.10

)

 

$

(0.28

)

 

$

(0.22

)

 

$

(0.83

)

Diluted

 

$

(0.10

)

 

$

(0.28

)

 

$

(0.22

)

 

$

(0.83

)

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:

 

 

 

 

 

 

 

 

Basic

 

 

23,353

 

 

 

15,102

 

 

 

23,351

 

 

 

14,956

 

Diluted

 

 

23,353

 

 

 

15,102

 

 

 

23,351

 

 

 

14,956

 

CREATIVE MEDIA & TRUST CORPORATION AND SUBSIDIARIES

Funds from Operations

(Unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

Numerator:

 

 

��

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(2,349

)

 

$

(4,210

)

 

$

(5,160

)

 

$

(12,416

)

Depreciation and amortization

 

 

4,974

 

 

 

5,069

 

 

 

9,978

 

 

 

10,106

 

FFO attributable to common stockholders

 

$

2,625

 

 

$

859

 

 

$

4,818

 

 

$

(2,310

)

Redeemable preferred stock dividends declared on dilutive shares (a)

 

 

2,294

 

 

 

 

 

 

11

 

 

 

(1

)

Diluted FFO attributable to common stockholders

 

$

4,919

 

 

$

859

 

 

$

4,829

 

 

$

(2,311

)

Denominator:

 

 

 

 

 

 

 

 

Basic weighted average shares of common stock outstanding

 

 

23,353

 

 

 

15,102

 

 

 

23,351

 

 

 

14,956

 

Effect of dilutive securities—contingently issuable shares (a)

 

 

21,255

 

 

 

13

 

 

 

70

 

 

 

 

Diluted weighted average shares and common stock equivalents outstanding

 

 

44,608

 

 

 

15,115

 

 

 

23,421

 

 

 

14,956

 

FFO attributable to common stockholders per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.11

 

 

$

0.06

 

 

$

0.21

 

 

$

(0.15

)

Diluted

 

$

0.11

 

 

$

0.06

 

 

$

0.21

 

 

$

(0.15

)

______________________

(a)

For the three and six months ended June 30, 2022 and 2021, the effect of certain shares of redeemable preferred stock were excluded from the computation of diluted FFO attributable to common stockholders and the diluted weighted average shares and common stock equivalents outstanding as such inclusion would be anti-dilutive.

CREATIVE MEDIA & TRUST CORPORATION AND SUBSIDIARIES

Core Funds from Operations

(Unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

Numerator:

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(2,349

)

 

$

(4,210

)

 

$

(5,160

)

 

$

(12,416

)

Depreciation and amortization

 

 

4,974

 

 

 

5,069

 

 

 

9,978

 

 

 

10,106

 

FFO attributable to common stockholders

 

$

2,625

 

 

$

859

 

 

$

4,818

 

 

$

(2,310

)

Redeemable preferred stock redemptions

 

 

106

 

 

 

13

 

 

 

181

 

 

 

26

 

Redeemable preferred stock deemed dividends

 

 

4

 

 

 

106

 

 

 

19

 

 

 

163

 

Core FFO attributable to common stockholders

 

$

2,735

 

 

$

978

 

 

$

5,018

 

 

$

(2,121

)

Redeemable preferred stock dividends declared on dilutive shares (a)

 

 

2,312

 

 

 

 

 

 

1,823

 

 

 

(1

)

Diluted Core FFO attributable to common stockholders

 

$

5,047

 

 

$

978

 

 

$

6,841

 

 

$

(2,122

)

Denominator:

 

 

 

 

 

 

 

 

Basic weighted average shares of common stock outstanding

 

 

23,353

 

 

 

15,102

 

 

 

23,351

 

 

 

14,956

 

Effect of dilutive securities-contingently issuable shares (a)

 

 

21,410

 

 

 

13

 

 

 

8,699

 

 

 

 

Diluted weighted average shares and common stock equivalents outstanding

 

 

44,763

 

 

 

15,115

 

 

 

32,050

 

 

 

14,956

 

Core FFO attributable to common stockholders per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

$

0.06

 

 

$

0.21

 

 

$

(0.14

)

Diluted

 

$

0.11

 

 

$

0.06

 

 

$

0.21

 

 

$

(0.14

)

______________________

(a)

For the three and six months ended June 30, 2022 and 2021, the effect of certain shares of redeemable preferred stock were excluded from the computation of diluted Core FFO attributable to common stockholders and the diluted weighted average shares and common stock equivalents outstanding as such inclusion would be anti-dilutive.

CREATIVE MEDIA & TRUST CORPORATION AND SUBSIDIARIES

Reconciliation of Net Operating Income

(Unaudited and in thousands)

 

 

 

Three Months Ended June 30, 2022

 

 

Same-Store

Office

 

Non-Same-Store Office

 

Total Office

 

Hotel

 

Lending

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash net operating income (loss)

 

$

6,996

 

$

388

 

$

7,384

 

$

3,249

 

 

$

1,689

 

$

12,322

 

Deferred rent and amortization of intangible assets, liabilities, and lease inducements

 

 

446

 

 

70

 

 

516

 

 

(2

)

 

 

 

 

514

 

Straight line lease termination income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment net operating income (loss)

 

 

7,442

 

 

458

 

 

7,900

 

 

3,247

 

 

 

1,689

 

 

12,836

 

Asset management and other fees to related parties

 

 

 

 

 

 

 

 

 

 

 

 

(920

)

Expense reimbursements to related parties—corporate

 

 

 

 

 

 

 

 

 

 

 

 

(526

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

(2,284

)

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

(880

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

(4,974

)

Income before benefit for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

3,252

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

(321

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

2,931

 

Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

(9

)

Net income attributable to the Company

 

 

 

 

 

 

 

 

 

 

 

$

2,922

 

 

 

Three Months Ended June 30, 2021

 

 

Same-Store

Office

 

Non-Same-Store Office

 

Total Office

 

Hotel

 

Lending

 

Total

Cash net operating income

 

$

6,895

 

$

141

 

$

7,036

 

$

 

 

$

5,047

 

$

12,083

 

Deferred rent and amortization of intangible assets, liabilities, and lease inducements

 

 

391

 

 

3

 

 

394

 

 

(2

)

 

 

 

 

392

 

Straight line lease termination income

 

 

156

 

 

 

 

156

 

 

 

 

 

 

 

156

 

Segment net operating income (loss)

 

 

7,442

 

 

144

 

 

7,586

 

 

(2

)

 

 

5,047

 

 

12,631

 

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Asset management and other fees to related parties

 

 

 

 

 

 

 

 

 

 

 

 

(2,260

)

Expense reimbursements to related parties—corporate

 

 

 

 

 

 

 

 

 

 

 

 

(454

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

(2,491

)

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

(835

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

(5,069

)

Income before benefit for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

1,523

 

Benefit for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

(996

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

527

 

Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

3

 

Net income attributable to the Company

 

 

 

 

 

 

 

 

 

 

 

$

530

 

 

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