Creative Media & Community Trust Corporation (CMCT), a Real Estate Investment Trust (REIT), reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a modest increase in total revenues, which rose to $28.6 million for Q3 2024, compared to $28.1 million in Q3 2023, marking a 1.8% increase. For the nine months, total revenues reached $97.1 million, up 8.1% from $89.8 million in the same period last year. This growth was primarily driven by a 43.3% increase in multifamily revenue, which totaled $4.8 million in Q3 2024, compared to $3.3 million in Q3 2023.
Despite the revenue growth, CMCT reported a net loss of $10.6 million for Q3 2024, an improvement from a net loss of $16.6 million in Q3 2023. The nine-month net loss also decreased significantly to $15.3 million from $42.6 million in the prior year, reflecting a 64% reduction. The decrease in net loss was attributed to a substantial reduction in depreciation and amortization expenses, which fell by $26.7 million year-over-year.
Total expenses for Q3 2024 decreased to $37.9 million from $45.4 million in Q3 2023, a decline of 16.4%. This reduction was largely due to lower depreciation and amortization costs. The company’s funds from operations (FFO) for Q3 2024 were $(28.4) million, a significant decrease from $(7.5) million in Q3 2023, primarily due to increased redeemable preferred stock redemptions and dividends.
As of September 30, 2024, total assets were reported at $868.0 million, down from $891.2 million at the end of 2023. Total liabilities increased slightly to $524.4 million from $514.4 million. Stockholders’ equity decreased to $321.0 million from $374.4 million, reflecting the impact of preferred stock redemptions.
In terms of strategic developments, CMCT redeemed 2.6 million shares of Series A1 Preferred Stock and 2.2 million shares of Series A Preferred Stock, converting them into common stock. The company plans to continue evaluating further redemptions of preferred stock in common stock during Q4 2024. Additionally, CMCT is in the process of refinancing its hotel in Sacramento and three properties in Los Angeles to repay amounts outstanding under its 2022 Credit Facility, with expected completion by the end of Q1 2025.
Overall, CMCT's performance in Q3 2024 reflects a combination of revenue growth in certain segments, significant reductions in net loss, and ongoing strategic initiatives aimed at improving liquidity and positioning for future opportunities in the real estate market.
About Creative Media & Community Trust Corp
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