CMCT · Creative Media & Community Trust Corporation

CMCT’s Q1 2026 results reflect an active phase of strategic restructuring rather than operational deterioration. The $34.7 million net loss attributable to common stockholders was largely driven by $22.2 million in preferred stock redemptions — a deliberate capital structure action, not an operating expense — and a $1.9 million decline in segment NOI, primarily from reduced tenant reimbursements in Oakland and higher real estate taxes in Beverly Hills. Core FFO improved modestly to $(5.9) million, signaling underlying operational stabilization once non-recurring items are excluded. The sale of First Western for $44.9 million (netting $31.2 million in cash) and the March 2026 redemption of $242.8 million in preferred stock mark concrete execution against CMCT’s September 2024 plan to strengthen liquidity and refocus on multifamily and creative office assets. Portfolio metrics show meaningful progress: same-store multifamily occupancy rose 1,120 bps to 91.4%, and office leasing improved to 85.7% when excluding the challenged Oakland asset — though that property’s mortgage matures in Q3 2026 with no extension guaranteed. Management explicitly ties the $16.0 million annual FFO benefit from the March redemption to returning the capital structure to its long-term target of ~38% common equity, 7% preferred equity, and 55% debt (fair value basis). With no forward guidance disclosed and no stated intent to redeem further preferred stock at this time, investors should focus on execution against the ongoing asset optimization plan — particularly refinancing discussions for the Sheraton Hotel and evaluation of additional asset sales — rather than near-term earnings normalization.