Creative Media & Community Trust Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Creative Media & Community Trust Corp filed its Q1 2024 10-Q report, detailing financial performance for the period ending March 31, 2024.</b>

AI Summary

Creative Media & Community Trust Corp (CMCT) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Creative Media & Community Trust Corp (CMCT) filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. CMCT is incorporated in Maryland (MD). The company's business address is in Dallas, Texas (TX).

Why It Matters

For investors and stakeholders tracking Creative Media & Community Trust Corp, this filing contains several important signals. This 10-Q filing provides investors with an updated view of CMCT's financial health and operational performance for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial standing and future prospects in the real estate investment trust sector.

Risk Assessment

Risk Level: low — Creative Media & Community Trust Corp shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial events or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand CMCT's performance drivers and any emerging trends.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report)
• 2024-05-15 — Filing Date (10-Q submission)
• 2024 — Fiscal Year (Reporting period)
• 1231 — Fiscal Year End (Annual cycle)

Key Players & Entities

• Creative Media & Community Trust Corp (company) — Filer name
• CMCT (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-15 (date) — Filing date
• Dallas, TX (location) — Business address
• Maryland (location) — State of incorporation

FAQ

Industry Context

Creative Media & Community Trust Corp operates as a Real Estate Investment Trust (REIT), focusing on income-generating properties.

Regulatory Implications

As a publicly traded company, CMCT is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency for investors.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024 to identify revenue trends and profitability.
2. Examine any disclosures related to debt, equity, and cash flow to assess financial stability.
3. Review the business description and risk factors for any changes or new information impacting the company's operations.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-15: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive overview of a company's financial performance during the quarter.)

REITs

Real Estate Investment Trusts are companies that own, operate, or finance income-generating real estate. (CMCT operates within this sector, making its financial health and property performance key indicators.)

Year-Over-Year Comparison

This filing is a standard 10-Q for the first quarter of 2024, providing an update on the company's financial position since the last annual report.

Key Financial Figures

• $0.001 — ection 12(b) of the Act: Common Stock, $0.001 Par Value CMCT Nasdaq Global Market C

Filing Documents

• cmct-20240331.htm (10-Q) — 1871KB
• exhibit103jpmorgan-cmctxci.htm (EX-10.3) — 121KB
• exhibit311q12024.htm (EX-31.1) — 9KB
• exhibit312q12024.htm (EX-31.2) — 10KB
• exhibit321q12024.htm (EX-32.1) — 5KB
• exhibit322q12024.htm (EX-32.2) — 5KB
• 0000908311-24-000019.txt (&nbsp;) — 12445KB
• cmct-20240331.xsd (EX-101.SCH) — 95KB
• cmct-20240331_cal.xml (EX-101.CAL) — 104KB
• cmct-20240331_def.xml (EX-101.DEF) — 607KB
• cmct-20240331_lab.xml (EX-101.LAB) — 937KB
• cmct-20240331_pre.xml (EX-101.PRE) — 808KB
• cmct-20240331_htm.xml (XML) — 2013KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets — March 31, 2024 and December 31, 2023 1 Consolidated Statements of Operations — Three Months Ended March 31, 2024 and 2023 2 Consolidated Statements of Equity — Three Months Ended March 31, 2024 and 2023 3 Consolidated Statements of Cash Flows — Three Months Ended March 31, 2024 and 2023 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 52

Other Information

PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 53 Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 3. Defaults Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54 Table of Contents PART I Financial Information Item 1.

Financial Statements

Financial Statements CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Investments in real estate, net $ 700,618 $ 704,762 Investments in unconsolidated entities 33,709 33,505 Cash and cash equivalents 21,307 19,290 Restricted cash 24,335 24,938 Loans receivable, net (Note 5) 56,229 57,005 Accounts receivable, net 6,030 5,347 Deferred rent receivable and charges, net 27,793 28,222 Other intangible assets, net 3,852 3,948 Other assets 13,630 14,183 TOTAL ASSETS $ 887,503 $ 891,200 LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY LIABILITIES: Debt, net $ 472,813 $ 471,561 Accounts payable and accrued expenses 25,639 26,426 Due to related parties 3,333 3,463 Other liabilities 13,639 12,981 Total liabilities 515,424 514,431 COMMITMENTS AND CONTINGENCIES (Note 15) EQUITY: Series A cumulative redeemable preferred stock, $ 0.001 par value; 34,211,995 and 34,611,501 shares authorized as of March 31, 2024 and December 31, 2023, respectively; 8,820,338 and 7,042,333 shares issued and outstanding, respectively, as of March 31, 2024 and 8,820,338 and 7,431,839 shares issued and outstanding, respectively, as of December 31, 2023; liquidation preference of $ 25.00 per share, subject to adjustment 176,007 185,704 Series A1 cumulative redeemable preferred stock, $ 0.001 par value; 27,880,928 and 27,904,974 shares authorized as of March 31, 2024 and December 31, 2023, respectively; 11,327,248 and 11,208,176 shares issued and outstanding, respectively, as of March 31, 2024 and 10,473,369 and 10,378,343 shares issued and outstanding, respectively, as of December 31, 2023; liquidation preference of $ 25.00 per share, subject to adjustment 277,585 256,935 Series D cumulative redeemable preferred stock, $ 0.001 par value; 26,991,590 shares authorized as of March 31, 2024 and December 31, 2023; 56,857 and 48,44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) 1. ORGANIZATION AND OPERATIONS Creative Media & Community Trust Corporation (formerly known as CIM Commercial Trust Corporation) (the "Company"), is a Maryland corporation and real estate investment trust ("REIT"). The Company primarily acquires, develops, owns and operates both premier multifamily properties situated in vibrant communities throughout the United States and Class A and creative office real assets in markets with similar business and employment characteristics to its multifamily investments. The Company also owns one hotel in northern California and a lending platform that originates loans under the Small Business Administration ("SBA") 7(a) loan program. The Company seeks to apply the expertise of CIM Group Management, LLC ("CIM Group") and its affiliates to the acquisition, development and operation of premier multifamily properties and creative office assets that cater to rapidly growing industries such as technology, media and entertainment in vibrant and emerging communities throughout the United States. The Company's common stock, $ 0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq") under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE") under the ticker symbol "CMCT." The Company has authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock"). Commencing in June 2022, the Company conducted a public offering with respect to shares of its Series A1 Preferred Stock, par value $ 0.001 per share with an initial stated value of $ 25.00 per share, subject to adjustment (Note 11). The Company has filed a Registration Statement on Form S-11 in respect of such offering and anticipates continuing the offering upon effectiveness of such Registration Statement on Form S-11. Nothing contained in this Quarterly Report on Form 10-Q is or shall be deem

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) – (Continued) Unconsolidated Joint Ventures (as defined below) are considered VIEs. Applying the consolidation requirements for VIEs, the Company determined that it is not the primary beneficiary based on its lack of power to direct activities and its obligations to absorb losses and right to receive benefits. Therefore, the Unconsolidated Joint Ventures do not qualify for consolidation. The Company accounts for its investments in Unconsolidated Joint Ventures as equity method investments. Investments in Real Estate —Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Lesser of useful life or lease term The fair value of real estate acquired is recorded to acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Capitalized Project Costs The Company capitalizes project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (Unaudited) – (Continued) Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company has interest rate caps that are used to manage exposure to interest rate movements, but do not meet the requirements to be designated as hedging instruments. The change in fair value of the derivative instruments that are not designated as hedges is recorded directly to earnings as interest expense on the accompanying consolidated statements of operations. See Note 8 for further disclosures about our derivative financial instruments and hedging activities. Revenue Recognition —At the inception of a revenue-producing contract, the Company determines if a contract qualifies as a lease and if not, then as a customer contract. Based on this determination, the appropriate treatment in accordance with GAAP is applied to the contract, including its revenue recognition. Revenue from leasing activities The Company operates as a lessor of both office and multifamily real estate assets. When the Company enters into a contract or amends an existing contract, the Company evaluates if the contracts meet the definition of a lease using the following criteria: One party (lessor) must hold an identified asset; The counterparty (lessee) must have the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of the contract; and The counterparty (lessee) must have the right to direct the use of the identified asset throughout the period of the contract. The Company determined that the Company's contracts with its tenants explicitly identify the premises and that any substitution rights to relocate tenants to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under such contracts, the Company's tenants have the r

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