CMCT Files 10-Q: Financials and Operations Update

TL;DR

CMCT 10-Q filed. Q3 financials out. Check for updates.

AI Summary

Creative Media & Community Trust Corp (CMCT) filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational updates. Key financial figures and strategic developments are outlined within the report, providing insight into the company's current standing and future outlook.

Why It Matters

This filing provides investors with a crucial update on Creative Media & Community Trust Corp's financial health and strategic direction for the third quarter of 2024.

Risk Assessment

Risk Level: medium — As a real estate investment trust, CMCT is subject to market fluctuations and interest rate risks inherent in the real estate sector.

Key Numbers

• 12/31 — Fiscal Year End (Indicates the end of the company's fiscal year.)
• 2024 — Fiscal Year (The current fiscal year being reported on.)

Key Players & Entities

• Creative Media & Community Trust Corp (company) — Filer
• 20240930 (date) — Period of Report
• 20241108 (date) — Filing Date
• CIM Commercial Trust Corp (company) — Former Company Name
• PMC COMMERCIAL TRUST /TX (company) — Former Company Name

FAQ

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-20240930.htm (10-Q) — 2517KB
• cmct-xamendedandrestatedci.htm (EX-10.2) — 764KB
• exhibit311q32024.htm (EX-31.1) — 9KB
• exhibit312q32024.htm (EX-31.2) — 10KB
• exhibit321q32024.htm (EX-32.1) — 5KB
• exhibit322q32024.htm (EX-32.2) — 5KB
• 0000908311-24-000063.txt ( ) — 15218KB
• cmct-20240930.xsd (EX-101.SCH) — 95KB
• cmct-20240930_cal.xml (EX-101.CAL) — 107KB
• cmct-20240930_def.xml (EX-101.DEF) — 621KB
• cmct-20240930_lab.xml (EX-101.LAB) — 979KB
• cmct-20240930_pre.xml (EX-101.PRE) — 836KB
• cmct-20240930_htm.xml (XML) — 2492KB

Financial Information

PART I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets — September 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations — Three and Nine Months Ended September 30, 2024 and 2023 2 Consolidated Statements of Equity — Nine Months Ended September 30, 2024 and 2023 3 Consolidated Statements of Cash Flows — Nine Months Ended September 30, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 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 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 61

Other Information

PART II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 3. Defaults Upon Senior Securities 63 Item 4. Mine Safety Disclosures 63 Item 5. Other Information 63 Item 6. Exhibits 64 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) September 30, 2024 December 31, 2023 ASSETS Investments in real estate, net $ 702,845 $ 704,762 Investments in unconsolidated entities 34,196 33,505 Cash and cash equivalents 18,454 19,290 Restricted cash 17,521 24,938 Loans receivable, net (Note 5) 55,742 57,005 Accounts receivable, net 4,198 5,347 Deferred rent receivable and charges, net 21,087 28,222 Other intangible assets, net 3,663 3,948 Other assets 10,343 14,183 TOTAL ASSETS $ 868,049 $ 891,200 LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY LIABILITIES: Debt, net $ 478,339 $ 471,561 Accounts payable and accrued expenses 26,582 26,426 Due to related parties 8,864 3,463 Other liabilities 10,604 12,981 Total liabilities 524,389 514,431 COMMITMENTS AND CONTINGENCIES (Note 15) REDEEMABLE PREFERRED STOCK: Series A1 cumulative redeemable preferred stock, $ 0.001 par value; 25,226,343 and 27,904,974 shares authorized as of September 30, 2024 and December 31, 2023, respectively; 913,630 shares issued and outstanding as of September 30, 2024 and no shares issued or outstanding as of December 31, 2023; liquidation preference of $ 25.00 per share, subject to adjustment 20,799 — EQUITY: Series A cumulative redeemable preferred stock, $ 0.001 par value; 31,519,738 and 34,611,501 shares authorized as of September 30, 2024 and December 31, 2023, respectively; 8,820,338 and 4,340,076 shares issued and outstanding, respectively, as of September 30, 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 108,703 185,704 Series A1 cumulative redeemable preferred stock, $ 0.001 par value; 25,226,343 and 27,904,974 shares authorized as of September 30, 2024 and December 31, 2023, respectively; 11,327,248 and

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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." 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For more information regarding the Company's significant accounting policies and estimates, please refer to "Basis of Presentation and Summary of Significant Accounting Policies" contained in Note 2 to the Company's consolidated financial statements for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 29, 2024. Interim Financial Information —The accompanying interim consolidated financial statements of the Company have been prepared by the Company's m

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (Unaudited) – (Continued) 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 relative 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 as incurred. Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred. Recoverability of Investments in Real Estate —The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If, and when, such events or changes in circumstances are present, the recove

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