Creative Media & Community Trust Corporation (NASDAQ:CMCT) Posts Earnings Results, Misses Estimates By $0.92 EPS

Creative Media & Community Trust Corporation (NASDAQ:CMCT) announced its quarterly earnings results on Friday. The real estate investment trust reported ($4.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($3.11) by ($0.92), FiscalAI reports. The firm had revenue of $29.68 million during 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 Down 6.9%

Shares of CMCT opened at $4.74 on Friday. The firm’s 50-day simple moving average is $3.58 and its 200 day simple moving average is $65.45. The company has a debt-to-equity ratio of 2.67, a quick ratio of 1.78 and a current ratio of 1.78. The firm has a market cap of $13.08 million, a P/E 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.

Wall Street Analysts Forecast Growth

CMCT has been the topic of several research analyst reports. Zacks Research upgraded shares of Creative Media & Community Trust Corporation to a “hold” rating in a report on Friday, June 5th. Weiss Ratings restated a “sell (d)” rating on shares of Creative Media & Community Trust Corporation in a report on Friday, June 26th. Finally, Wall Street Zen upgraded Creative Media & Community Trust Corporation from a “sell” rating to a “hold” rating in a research note on Saturday, June 27th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce”.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Virtu Financial LLC bought a new stake in shares of Creative Media & Community Trust Corporation during the 4th quarter valued at $55,000. Kestra Advisory Services LLC bought a new stake in shares of Creative Media & Community Trust Corporation during the 4th quarter worth $52,000. Cerity Partners LLC acquired a new position in Creative Media & Community Trust Corporation during the second quarter worth about $90,000. Finally, Arkadios Wealth Advisors bought a new stake in shares of Creative Media & Community Trust Corporation during the 4th quarter valued at approximately $43,000. Institutional investors and hedge funds own 28.34% of the company’s stock.

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.