Creative Media & Community Trust Corporation (CMCT)
NASDAQ:CMCT
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Creative Media
(NASDAQ:CMCT)
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Rating:43Neutral
Price Target:
$4.50
▲(50.50% Upside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance (widening losses, negative margins, and negative operating/free cash flow) and bearish technicals (price well below key moving averages with negative MACD and high volatility). The earnings call provides a partial offset via a clearer path to improved FFO through preferred redemptions, asset-based financing, and cash proceeds from the lending business sale, but near-term NOI/FFO weakness and refinancing uncertainty remain meaningful risks.
Positive Factors
Reduced preferred dividend burden
Redeeming large preferred holdings cuts recurring preferred dividend cash outflows and is forecast to boost annual FFO by roughly $16M starting Q2 2026. This materially improves cash available for operations and deleveraging, strengthening long-term cash generation and capital flexibility.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow erodes liquidity and limits the company’s ability to fund working capital, capex, or debt service from operations. Even with one-time cash infusions, persistent cash outflows raise the probability of asset sales, refinancing stress, or equity issuance over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Reduced preferred dividend burden
Redeeming large preferred holdings cuts recurring preferred dividend cash outflows and is forecast to boost annual FFO by roughly $16M starting Q2 2026. This materially improves cash available for operations and deleveraging, strengthening long-term cash generation and capital flexibility.
Read all positive factors
Creative Media (CMCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.46M
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)―
Beta (1Y)3.46
Revenue Growth-7.43%
EPS Growth88.54%
CountryUS
Employees5
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-124.18
Shares Outstanding2,639,158
10 Day Avg. Volume6,729,590
30 Day Avg. Volume2,286,183
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.28
Price to Sales (P/S)2.92
P/FCF Ratio-22.73
Enterprise Value/Market Cap38.88
Enterprise Value/Revenue4.26
Enterprise Value/Gross Profit-161.44K
Enterprise Value/Ebitda18.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$58.04M
Creative Media Business Overview & Revenue Model
Company Description
Creative 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...
How the Company Makes Money
CMCT primarily makes money by operating income-producing commercial real estate. Its main revenue stream is rental income collected from tenants under lease agreements for its office properties (including any contractual base rent and other tenant...
Creative Media Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call communicates meaningful strategic and operational progress — notably a transformational preferred redemption expected to boost annual FFO by ~$16 million, a shift to asset-based financing with minimal recourse debt, sale of the lending division for net cash proceeds, and strong multifamily occupancy and market fundamentals — but also reports near-term financial headwinds: a sharp negative FFO in Q1 driven by increased preferred dividends and lower segment NOI, temporary hotel disruptions, and uncertain refinancing outcomes on select assets. Overall, the company highlights a clear plan to translate balance sheet and operational improvements into better FFO over 2026–2027, while acknowledging current short-term weakness.Positive Updates
Preferred Stock Redemption Strengthens Capital Structure
Redeemed $243 million of preferred stock into common stock during Q1 2026 (and $396 million since Sept 2024). Management expects the redemption to increase annual FFO by approximately $16 million beginning in 2026, with the full benefit starting in Q2 2026.
Negative Updates
Significant Decline in Reported FFO
Reported FFO was negative $28.8 million (negative $58.47 per diluted share) in Q1 2026 versus negative $5.4 million (negative $900.83 per diluted share) in Q1 2025 — a deterioration driven primarily by a $21.9 million increase in preferred stock dividends and lower segment NOI.
Read all updates
Q1-2026 Updates
Positive
Negative
Preferred Stock Redemption Strengthens Capital Structure
Redeemed $243 million of preferred stock into common stock during Q1 2026 (and $396 million since Sept 2024). Management expects the redemption to increase annual FFO by approximately $16 million beginning in 2026, with the full benefit starting in Q2 2026.
Read all positive updates
Company Guidance
The company’s forward guidance centers on improving FFO in 2026–2027 driven by two levers: property-level performance and a substantial reduction in preferred dividend obligations—chiefly the recent redemption of $243 million of preferred into common (bringing total redemptions to $396 million since September 2024) which the company expects to boost FFO by roughly $16 million per year with the full benefit beginning in Q2 2026. Management also highlighted strengthened liquidity from asset-based financings on nine assets, full retirement of the recourse credit facility, the January 2026 sale of the lending division for ~$44.9 million (net cash proceeds ~ $31 million), and active refinancing efforts at the Sheraton Grand, 1150 Clay (seeking a one‑year extension), and the Oakland office loan (asset generated ~$0.8 million cash flow after debt service in 2025). Operational goals and metrics cited as drivers include translating an undepreciated book value of roughly $147 per share into shareholder value, improving multifamily NOI (up 64% ex‑JV), raising multifamily occupancy to 89.6% (+940 bps YoY) with Oakland at 91.9% (+860 bps), lifting office lease percentage to 85.7% ex‑Oak Glen (+470 bps), completing 20.162 thousand sq ft of office leases in Q1, and unlocking upside at hotel (505 rooms renovated, potential +8 rooms) and LA multifamily projects (701 S. Hudson 88.2% occupied with entitlement for +50 units; 1915 Park 52.8% leased).Creative Media Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
26
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 113.79M | 116.67M | 124.51M | 119.26M | 101.91M | 90.93M |
| Gross Profit | -3.00K | -11.98M | 51.70M | 51.84M | 47.53M | 47.68M |
| EBITDA | 26.49M | 28.19M | 39.65M | 37.54M | 37.18M | 31.74M |
| Net Income | -41.20M | -39.00M | -25.18M | -48.48M | 5.92M | -850.00K |
Balance Sheet | ||||||
| Total Assets | 792.32M | 859.19M | 889.55M | 891.20M | 690.25M | 660.87M |
| Cash, Cash Equivalents and Short-Term Investments | 15.79M | 15.44M | 20.26M | 19.29M | 46.19M | 22.31M |
| Total Debt | 500.08M | 509.77M | 505.73M | 471.56M | 184.27M | 201.15M |
| Total Liabilities | 535.49M | 592.94M | 562.49M | 514.43M | 312.52M | 249.53M |
| Stockholders Equity | 256.06M | 265.36M | 325.31M | 374.40M | 377.36M | 410.99M |
Cash Flow | ||||||
| Free Cash Flow | -39.87M | -15.00M | -6.24M | -1.33M | 23.59M | 42.23M |
| Operating Cash Flow | -21.41M | 5.79M | 17.03M | 12.00M | 32.41M | 46.28M |
| Investing Cash Flow | 30.19M | -16.40M | -22.29M | -88.69M | -22.27M | -12.70M |
| Financing Cash Flow | -20.13M | -4.57M | 13.90M | 63.45M | 13.69M | -43.58M |
Creative Media Technical Analysis
Negative
2.99
Price Trends
13.52
Negative
154.20
Negative
387.35
Negative
Market Momentum
-6.14
Negative
23.10
Positive
7.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCT, the sentiment is Negative. The current price of 2.99 is below the 20-day moving average (MA) of 5.50, below the 50-day MA of 13.52, and below the 200-day MA of 387.35, indicating a bearish trend. The MACD of -6.14 indicates Negative momentum. The RSI at 23.10 is Positive, neither overbought nor oversold. The STOCH value of 7.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCT.
Creative Media Risk Analysis
Creative Media disclosed 2 risk factors in its most recent earnings report. Creative Media reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $167.08M | -2.24 | -21.93% | 7.34% | -6.30% | -65.48% | |
49 Neutral | $31.07M | -0.70 | -31.38% | ― | -34.20% | 84.89% | |
47 Neutral | $54.39M | -1.81 | -5.41% | 4.71% | -8.09% | 50.44% | |
43 Neutral | $12.46M | -0.09 | -13.44% | ― | -7.43% | 88.54% |
* Real Estate Sector Average
CMCT
Creative Media
4.72
-768.28
-99.39%
FSP
Franklin Street Properties
0.52
-1.26
-70.66%
NYC
New York City REIT
10.64
0.08
0.76%
ONL
Orion Office REIT
2.94
1.29
78.29%
NLOP
Net Lease Office Properties
11.37
1.55
15.81%
Creative Media Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Creative Media Highlights Q1 2026 Results and Restructuring
Neutral
May 8, 2026
Creative Media Community Trust Corporation reported first-quarter 2026 results on May 8, 2026, highlighting continued progress on its strategy to pivot toward multifamily assets, strengthen its balance sheet and improve liquidity despite posting ...
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.