Q1 2024 Creative Media & Community Trust Corporation Earnings Call Transcript
Key Points
- Creative Media & Community Trust reported an increase in net operating income (NOI) in both office and hotel segments, with office segment NOI up 9% year over year.
- The company has executed approximately 37,000 square feet of office leases in the quarter, maintaining a stable office lease percentage at 84%.
- Multifamily segment occupancy improved significantly to 86.2% at the end of the first quarter from 79.3% at the end of 2023.
- Creative Media & Community Trust is on track to deliver two new multifamily assets in Los Angeles, aiming to balance between creative office and multifamily assets.
- The company has raised an additional $19.1 million in net proceeds from the sale of Series A-1 preferred stock, enhancing its financial flexibility.
- Cash flow continues to be impacted by elevated short-term interest rates, necessitating potential asset sales and debt reduction.
- The lending segment NOI decreased year over year due to increased interest expense from a securitization transaction completed a year ago.
- Rental rates at two of the largest multifamily properties, Channel House and 1150 Clay, have been below expectations.
- The company reported a negative core FFO of $0.19 per diluted share for the first quarter of 2024, compared to a positive $0.06 per share in the prior year period.
- There is ongoing uncertainty in the office segment with upcoming lease expirations, requiring careful management to maintain occupancy and income levels.
Good day and welcome to the Creative Media & Community Trust Corporation first-quarter 2024 earnings conference call. (Operator Instructions)
Please note this event is being recorded. Now I would like to turn the conference over to Steve Altebrando, please.
Hello, everyone, and thank you for joining us. My name is Steve Altebrando, the portfolio oversight for CMCT. Also on the call today are David Thompson, our Chief Executive Officer, and Barry Rowan, our Chief Financial Officer. This call is being webcast and will be temporarily archived on the Investor Relations section of our website where you can also find our earnings release. Our earnings release includes a reconciliation of non-GAAP financial measures discussed during today's call.
During this call, we will make forward looking statements. These forward looking statements are based on beliefs of assumptions made by and information currently available to us. Our actual results will be
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