Creative Media & Community Trust Corp Q4 FY2024 earnings call

• Strategic initiatives: Focus on improving balance sheet, liquidity, growing multifamily, reducing traditional office. Announced property level financing, closed mortgages on several assets, working on additional financing to repay recourse credit facility.
• Fourth quarter results: Core FFO improved by ~$4.5 million due to higher NOI, lower interest expense, and lower preferred dividends. NOI increased by $1.6 million from Q3, with Hotel Segment up $1.1 million, Lending and Multifamily had small increases, and Office had a small decline.
• Refinancings: Closed mortgages on Sheraton Grand Hotel, Wilshire portfolio, 8944 Lindblade; ongoing financing for 3601 South Congress.
• Multifamily: NOI modestly increased, occupancy had a 220 basis point decline q-o-q but 240 basis points y-o-y; progress on lease-up of 701 South Hudson and 4750 Wilshire; development underway at 1915 Park.
• Office segment: Executed nearly 176,000 sq ft of leases in Q4, office lease percentage 71% at end of Q4, leasing activity picking up in L.A. and Austin.

For the fourth quarter of 2024, the segment NOI was $9.2 million. The Office segment had NOI of $5.2 million in Q4 2024 compared to $5.4 million in Q4 2023, with a slight drop due to a decrease in rental revenue at the Oakland property. The Multifamily segment had segment NOI of approximately $855,000 in Q4 2024 vs approximately $1.1 million in the prior year comparable period, primarily due to an unrealized loss. The Hotel segment's NOI decreased to $2.1 million in Q4 2024 from $2.9 million in the prior year comparable period due to decreased occupancy from hotel renovations. The Lending division's NOI decreased to $980,000 from $1.3 million in the prior year comparable period due to lower premium and interest income.

• Progressed on repaying recourse credit facility, with balance down from $169 million to $15 million. Expect to complete additional financing to fully retire recourse credit facility. Goal of strengthening balance sheet via asset sales.

• Risks related to known and unknown factors affecting actual results, with detailed risks outlined in SEC filings. Impact of work from home on office occupancy.

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