Creative Media & Community Trust Corp Q1 FY2026 earnings call

• Strategic plan progress: Completed redemption of $243 million of preferred stock into common stock, which significantly improved the balance sheet and will increase FFO starting in Q2 2026 by approximately $16 million per year; shifted to an asset-based financing strategy, completed financings on nine assets and fully retired the recourse credit facility; sold the lending division in January 2026, yielding net cash proceeds of approximately $31 million after accounting for debt repayment, transaction expenses, etc. - Future focus: Primary focus on improving FFO in 2026 and 2027, with two key levers: improving property level performance across the portfolio and substantial reduction in preferred dividend obligations. - Multifamily segment: Oakland multifamily occupancy increased to 91.9% at end of Q1 2026; adjacent downtown San Francisco multifamily fundamentals rebounded with rent growth and decreased vacancy; Los Angeles: 701 South Hudson partial conversion to residential is 88.2% occupied and entitlements received to build additional 50 units; 1915 Park ground up development in Echo Park achieved 52.8% leased at quarter end. - Office segment: Executed approximately 20,562 square feet of leases in Q1 and saw active pipeline, excluding Oakland office asset, lease percentage was 85.7% at end of Q1, representing a 470 basis point increase year-over-year; 11600 Wilshire Boulevard commenced renovation program. - Hotel segment: Substantially completed renovation of public spaces following full renovation of all 505 guest rooms; evaluating opportunity to add eight new guest rooms by converting currently underutilized space. - Financing initiatives: At Sheridan Grand, consider opportunity to increase loan balance and reduce borrowing spread; at 1150 Clay, in active discussions with lender to secure one-year extension on mortgage; at Oakland office property, seeking extension of loan maturity but cannot guarantee agreement with lender.

For the first quarter of 2026, the segment NOI was $9.8 million compared to $11.8 million in the prior year comparable period. Breaking down by segment: Office segment NOI in Q1 2026 was $6.5 million versus $7.1 million in Q1 2025. The decrease was primarily due to a decrease in tenant reimbursement revenue at an office property in Oakland, CA, and an increase in real estate tax expense at an office property in Beverly Hills, CA driven by a tax refund recorded in the prior year period. Hotel segment NOI for Q1 2026 was $4 million versus $4.7 million in Q1 2025. This decrease was largely attributable to temporary factors, including a renovation-related disruption early in the quarter and an issue in one of the mechanical systems that temporarily removed a number of rooms from service in March. Our lending division NOI was $590,000 in the prior year comparable period, but we completed the sale of our lending business in January 2026, and the related amounts were excluded from segment level activity during Q1 2026. Our multifamily segment net operating loss of $613,000 remained fairly consistent compared to the prior year comparable period.

• Focus on improving FFO in 2026 and 2027, relying on improving property level performance across the portfolio and substantial reduction in preferred dividend obligations. - Redemption of preferred stock will increase FFO starting in Q2 2026, expected to increase FFO by approximately $16 million per year. - Continuing to take proactive steps to further strengthen financial profile, including actively working to extend debt maturities on a handful of assets and evaluating selective asset sales where opportunities to unlock value, improve portfolio quality, or redeploy capital more efficiently are seen.

• Actual results may differ from expectations due to known and unknown risks, trends, uncertainties, and other factors beyond control or prediction. - Potential risks detailed in SEC filings available on investor relations section of website. - Uncertainty regarding securing an agreement with the lender for extension of loan maturity at Oakland office property; uncertainty in financing initiatives such as at Sheridan Grand and 1150 Clay.

Showing no questions, this concludes our question and answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may now disconnect.