CMCT

Strategic Priorities

• FFO Growth: Core focus on improving funds from operations (FFO) in 2026 and 2027, with strengthening operating trends across all core segments. Excluding noncash JV losses, net operating income increased 22% year-over-year.
• Balance Sheet Strength: Management is prioritizing strengthening the balance sheet while funding critical growth initiatives (office leasing, hotel renovations). Core FFO improved by $3.6 million year-over-year, driven primarily by a reduction in preferred dividends.
• Potential Asset Sales: The firm is evaluating the sale of one or more real estate assets to further strengthen the balance sheet and close the perceived gap between current share price and portfolio intrinsic value.

Multifamily Operations

• 78% of CMCT's multifamily units are located in the recovering Bay Area, bolstered by AI-related employment and investment growth. Regional rent growth hit 25-year highs, with vacancy dropping to multi-decade lows, and new supply growth is projected to remain low due to elevated construction costs.
• In-place rents at Bay Area properties are ~12% below current asking rents, creating built-in upside for future NOI growth as leases roll over.
• Two new Los Angeles multifamily developments are progressing well: partial office-to-residential conversion at 701 South Hudson is 94.1% occupied, with predevelopment for an additional 50 entitled units on track for a potential late-2026 start; ground-up development 1915 Park reached 58.3% leased at quarter end after delivering in Q4 2025.

Office Operations

• Leasing trends are improving, with 16,000 square feet of new leases executed in Q2. Steady leasing demand is observed for available space in Los Angeles and Austin. Excluding the Oakland office asset, occupancy is up 470 basis points year-over-year to 84.4%.

Hotel Operations

• Renovations of public spaces are substantially complete, following full renovation of all 505 guestrooms — the first comprehensive renovation of the Sacramento hotel since 2008. Management is evaluating converting underutilized space to add 8 new accretive guestrooms.

Financing Activities

• The mortgage on the Oakland 1150 Clay Class A multifamily asset was extended to mid-2027. The firm is actively working to refinance the Sheraton Grand hotel mortgage, targeting a higher loan balance and lower borrowing spread post-renovation.

Management did not issue explicit numerical full-year guidance in this call. All forward-looking statements are qualitative, as follows:

• Management expects continued NOI and FFO growth across all operating segments, supported by improving market fundamentals and in-place rent upside for multifamily assets.
• New multifamily supply growth in the Bay Area is expected to remain low for the foreseeable future due to elevated construction costs.
• The completed hotel renovation is expected to drive improved performance for the asset in 2026 and beyond, and the proposed 8-room addition is expected to be accretive to earnings.
• Predevelopment work for the 50-unit addition at 701 South Hudson is on track to allow a potential construction start in late 2026.

1. Multifamily Segment: Q2 2026 net operating income (NOI) was $638,000, up from $189,000 in Q2 2025, representing a 238% year-over-year increase. This accounted for 6.86% of total Q2 2026 segment NOI, with a $449,000 year-over-year increase. Same-store occupancy hit 95.3% as of June 30 2026, up 1190 basis points from a year prior, and overall segment occupancy reached 93.6% (vs 83.4% in Q2 2025).
2. Office Segment: Q2 2026 NOI was $4 million, down from $5.5 million in Q2 2025, for a $1.5 million year-over-year decrease. This segment accounted for 43.01% of total Q2 2026 segment NOI. Excluding the Oakland office asset, leased occupancy increased 470 basis points year-over-year to 84.4%. The NOI decline was driven by a $2.4 million increase in noncash joint venture (JV) fair value losses; excluding JV losses, consolidated office NOI increased year-over-year.
3. Hotel Segment: Q2 2026 NOI was $4.6 million, up from $4.2 million in Q2 2025, an 11% year-over-year increase, representing a $466,000 year-over-year gain. This segment accounted for 49.46% of total Q2 2026 segment NOI. Revenue growth from higher occupancy was partially offset by increased operating expenses.

Total consolidated segment NOI for Q2 2026 was $9.3 million, down from $9.8 million in Q2 2025. Excluding unconsolidated entity losses, total segment NOI was $12.5 million in Q2 2026, up from $10.3 million in Q2 2025.

• Forward-looking performance is subject to known and unknown risks, trends, and uncertainties outside of management's control that could cause actual results to differ materially from expectations.
• The nonrecourse mortgage on the Oakland office property matured in early July 2026; management elected not to invest the additional capital required to refinance the mortgage, and a long-term resolution with the loan servicer is still pending.
• The large increase in JV losses in Q2 2026 was driven by noncash fair value adjustments to unconsolidated real estate entities, which can create volatility in reported earnings.

No questions were submitted by call participants during the question-and-answer session.