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Creative Media & Community Trust Corporation (CMCT)
NASDAQ:CMCT
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Creative Media
(NASDAQ:CMCT)
Rating:56Neutral
Price Target:
$9.50
▲(1.93%Upside)
Creative Media (CMCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.03M
Dividend Yield17.17%
Average Volume (3M)14.29K
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth-1.62%
EPS Growth41.56%
CountryUS
Employees5
SectorReal Estate
Sector Strength69
IndustryREIT - Office
Share Statistics
EPS (TTM)-20.73
Shares Outstanding754,607
10 Day Avg. Volume14,297
30 Day Avg. Volume14,293
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.95
Price to Sales (P/S)0.00
P/FCF Ratio47.10
Enterprise Value/Market Cap177.65
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit24.61
Enterprise Value/Ebitda7.15
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Creative Media Business Overview & Revenue Model
Company DescriptionCreative Media & Community Trust Corporation is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). Its properties are primarily located in Los Angeles and the San Francisco Bay Area. Creative Media & Community Trust Corporation is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities.
How the Company Makes MoneyCreative Media (CMCT) makes money through multiple revenue streams. The primary source of income is the production and distribution of multimedia content, where the company charges clients for creating high-quality videos, graphics, and audio content. Additionally, CMCT generates revenue through digital marketing services, including social media management, search engine optimization (SEO), and online advertising campaigns. The company also forms strategic partnerships with other media and technology firms to expand its reach and enhance its service offerings, further contributing to its earnings.
Creative Media Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: 42.29%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements such as the full repayment of the credit facility and an increase in hotel NOI, the company also faced challenges with declining multifamily and lending NOI, and negative core FFO. Office leasing activity showed some positive trends, but overall segment NOI decreased. The sentiment of the call can be considered balanced.Q1-2025 Updates
Positive Updates
Full Repayment of Credit Facility
The company has fully repaid and retired its recourse corporate level credit facility, which had a balance of approximately $169 million, demonstrating progress on strategic initiatives.
Increase in Hotel Net Operating Income
The Sheraton Grand Sacramento hotel reported a 15% increase in net operating income on a year-over-year basis, driven by increased occupancy and average daily rate.
Office Leasing Activity Improvement
Leasing activity picked up in Los Angeles and Austin, with approximately 30,000 square feet of leases executed in the quarter and an office lease percentage of 71.4%.
Completion of Financing Program
The company successfully completed a refinancing program in a challenging environment, securing a floating rate mortgage on its creative office campus, contributing to financial flexibility.
Negative Updates
Decrease in Multifamily Net Operating Income
Multifamily NOI decreased by $1.5 million from the prior quarter, primarily due to lower occupancy in seasonally slower winter months.
Decline in Lending Net Operating Income
Lending NOI declined approximately $390,000 due to a decrease in interest income from loan payoffs and lower interest rates.
Negative Core FFO
The company reported a negative core FFO of $5.1 million or negative $8.85 per diluted share, affected by reductions in segment NOI and increased interest expense.
Decrease in Overall Segment NOI
Segment NOI was $11.8 million in Q1 2025, down from $13.6 million in the prior year, with decreases driven by office, multifamily, and lending segment performances.
Company Guidance
In the first quarter of 2025, Creative Media & Community Trust Corporation focused on improving its financial stability and expanding its multifamily portfolio. The company successfully repaid and retired a $169 million recourse corporate credit facility and secured a floating rate mortgage on its Austin creative office campus. With 12 unencumbered assets, they aim to enhance financial flexibility. The multifamily portfolio now includes four operating assets, with a fifth set to launch in the third quarter, and there is potential for significant growth in net operating income through improved occupancy and rental rates. In terms of financial performance, the company's core FFO increased by $1.9 million from the prior quarter, driven by a $2.6 million rise in net operating income, primarily from the hotel segment, which saw a 15% year-over-year NOI increase. However, the multifamily segment's NOI decreased by $1.5 million, and the lending NOI dropped by $390,000 due to loan payoffs and lower interest rates. Additionally, the company executed new office leases totaling 30,000 square feet, with an office lease percentage of 71.4%.Creative Media Financial Statement Overview
Summary
Creative Media's financial performance reflects a mixed profile. While there are signs of operational efficiency, consistent net losses, and rising leverage are concerning. The company faces challenges in converting revenue growth into profitability and maintaining positive cash flow amidst substantial capital expenditures.Income Statement
Creative Media's income statement shows some strengths and weaknesses. The gross profit margin has been relatively stable with fluctuations, but the net profit margin is negative, indicating consistent net losses. The revenue growth rate has slowed down recently, reflecting challenges in maintaining growth momentum. The EBIT and EBITDA margins indicate operational efficiency but are overshadowed by negative net margins.55
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position with a debt-to-equity ratio that has increased over time, indicating rising leverage. Return on equity is negative, reflecting the impact of net losses on shareholder returns. The equity ratio is stable, suggesting a reasonable proportion of assets funded by equity.60
Neutral
Cash Flow
Cash flow analysis reveals mixed performance. Operating cash flow is positive, but free cash flow is negative due to significant capital expenditures. The free cash flow to net income ratio is unfavorable, highlighting challenges in converting profits to cash. The operating cash flow to net income ratio indicates better cash generation from operations relative to reported net income losses.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 122.81M | 124.51M | 119.26M | 101.91M | 90.93M | 77.21M | Gross Profit |
| 50.77M | 51.70M | -3.27M | 47.53M | 47.68M | 33.93M | EBIT |
| 13.95M | 15.52M | -15.81M | 16.90M | 11.70M | -4.04M | EBITDA |
| 37.98M | 39.65M | 37.54M | 37.25M | 30.62M | 17.36M | Net Income Common Stockholders |
| -27.56M | -25.18M | -48.48M | 5.92M | -851.00K | -15.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.77M | 20.26M | 19.29M | 46.19M | 22.31M | 33.64M | Total Assets |
| 882.34M | 889.55M | 891.20M | 690.25M | 660.87M | 685.62M | Total Debt |
| 512.66M | 505.73M | 471.56M | 184.27M | 201.15M | 324.31M | Net Debt |
| 492.89M | 485.47M | 452.27M | 138.08M | 178.83M | 290.68M | Total Liabilities |
| 566.91M | 562.49M | 514.43M | 312.52M | 249.53M | 361.67M | Stockholders Equity |
| 313.84M | 325.31M | 374.40M | 377.36M | 410.99M | 323.50M |
| Cash Flow | Free Cash Flow | ||||
| -11.27M | -6.24M | -1.33M | 23.59M | 42.23M | -1.90M | Operating Cash Flow |
| 16.62M | 17.03M | 12.00M | 32.41M | 46.28M | 12.83M | Investing Cash Flow |
| -27.05M | -22.29M | -88.69M | -22.27M | -12.70M | -38.32M | Financing Cash Flow |
| 13.92M | 13.90M | 63.45M | 13.69M | -43.58M | 33.20M |
Creative Media Technical Analysis
Neutral
9.32
Price Trends
6.87
Positive
10.87
Negative
86.46
Negative
Market Momentum
0.77
Negative
59.21
Neutral
56.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCT, the sentiment is Neutral. The current price of 9.32 is above the 20-day moving average (MA) of 8.46, above the 50-day MA of 6.87, and below the 200-day MA of 86.46, indicating a neutral trend. The MACD of 0.77 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 56.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMCT.
Creative Media Risk Analysis
Creative Media disclosed 107 risk factors in its most recent earnings report. Creative Media reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Creative Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.83B | 10.72 | 0.40% | 6.10% | 5.80% | -21.26% | |
56 Neutral | $7.03M | ― | -8.06% | 17.17% | -1.62% | 41.56% | |
56 Neutral | $179.17M | ― | -9.96% | 2.31% | -18.97% | -14.57% | |
56 Neutral | $169.73M | 4.10 | 2.10% | ― | -4.47% | -44.64% | |
52 Neutral | $107.33M | ― | -10.71% | 4.19% | -18.92% | -15.81% | |
45 Neutral | $17.01M | ― | -15.03% | 16.74% | -11.91% | -80.43% | |
42 Neutral | $24.48M | ― | -96.16% | ― | -6.36% | -26.04% |
* Real Estate Sector Average
Performance Comparison
CMCT
Creative Media
9.32
-137.35
-93.65%
FSP
Franklin Street Properties
1.73
0.11
6.79%
OPI
Office Properties Income
0.24
-1.94
-88.99%
EQC
Equity Commonwealth
1.58
-17.71
-91.81%
NYC
New York City REIT
10.50
1.35
14.75%
ONL
Orion Office REIT
1.91
-1.16
-37.79%
Creative Media Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Creative Media Reports Q1 2025 Financial Results
Negative
May 9, 2025
Creative Media & Community Trust Corporation reported its first-quarter 2025 results, highlighting a net loss of $11.9 million and a strategic shift towards multifamily assets. The company executed significant leases in its office segment and completed property-level financing to retire a corporate credit facility, indicating a focus on strengthening its financial position and enhancing operational efficiency.
Private Placements and Financing
Creative Media Secures $35.5M Mortgage Loan
Neutral
Apr 9, 2025
On April 3, 2025, Creative Media & Community Trust Corporation secured a $35.5 million mortgage loan from Comerica Bank for its subsidiary, CIM Urban REIT Properties IX, L.P. The loan, secured by the Penn Field office campus in Austin, Texas, includes a $32 million initial advance for corporate purposes and debt repayment, and a $3.5 million future advance for tenant allowance costs. This new loan replaces the company’s previous credit agreement and features a floating interest rate with a three-year term, extendable by two years. The agreement includes customary guaranties and indemnities, reflecting standard industry practices.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.