Creative Media & Community Trust Corporation (CMCT) 2022 Q3 法說會逐字稿

Hello, and welcome to the Creative Media & Community Trust Third Quarter 2022 Earnings Conference Call. (Operator Instructions)

您好，歡迎來到 Creative Media & Community Trust 2022 年第三季度收益電話會議。 （操作員說明）

Good morning, everyone, and thank you for joining us. My name is Steve Altebrando, the portfolio oversight for CMCT. Also on today is David Thompson, our Chief Executive Officer; Shaul Kuba, CIM Co-Founder and CMCT Board member; and Barry Berlin, our Chief Financial Officer.

大家早上好，感謝您加入我們。我叫 Steve Altebrando，是 CMCT 的投資組合監督。今天還有我們的首席執行官大衛·湯普森 (David Thompson)； CIM 聯合創始人兼 CMCT 董事會成員 Shaul Kuba；和我們的首席財務官 Barry Berlin。

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 and latest investor presentation. Our earnings release also includes reconciliations of non-GAAP financial measures discussed during today's call. During the course of this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of, assumptions made by and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will prove to be incorrect. Therefore, our actual future results can be expected to differ from our expectations, and those differences may be material. For a more detailed description of potential risks, please refer to our SEC filings, which can be found in the Investor Relations section of our website.

此電話會議正在進行網絡直播，並將暫時存檔在我們網站的“投資者關係”部分，您還可以在此處找到我們的收益發布和最新的投資者介紹。我們的收益發布還包括在今天的電話會議上討論的非 GAAP 財務措施的調節。在本次電話會議期間，我們將做出前瞻性陳述。這些前瞻性陳述是基於我們的信念、做出的假設和我們目前可獲得的信息。我們的實際結果將受到已知和未知的風險、趨勢、不確定性和我們無法控製或無法預測的因素的影響。儘管我們相信我們的假設是合理的，但它們並不能保證未來的表現，有些會被證明是不正確的。因此，我們未來的實際結果可能會與我們的預期有所不同，而且這些差異可能是重大的。有關潛在風險的更詳細描述，請參閱我們向美國證券交易委員會提交的文件，該文件可在我們網站的投資者關係部分找到。

With that, I'll turn the call over to David Thompson.

有了這個，我會把電話轉給大衛湯普森。

Thanks, Steve, and thank you, everyone, for joining our call today. Yesterday, we announced our third quarter 2022 earnings. Some highlights from the quarter: First, we had continued strong leasing activity, which is positioning us well for next year; second, we made significant progress on our value-add and development pipeline; third, we took steps to improve our liquidity and balance sheet, and this is extremely important in the current rising interest rate environment where we expect future acquisition opportunities; and fourth, we accretively deployed capital through both common and preferred share repurchases.

謝謝史蒂夫，感謝大家今天加入我們的電話會議。昨天，我們公佈了 2022 年第三季度的收益。本季度的一些亮點：首先，我們的租賃活動持續強勁，這為我們明年做好了準備；其次，我們在增值和開發渠道方面取得了重大進展；第三，我們採取措施改善我們的流動性和資產負債表，這在當前利率上升的環境下非常重要，我們期待未來的收購機會；第四，我們通過普通股和優先股回購增加了資本配置。

Our core FFO per share was negative $0.07 in the third quarter. While we completed a significant amount of new leases this year, and have a strong lease pipeline, we will not see the full benefit until next year. Most notably, this includes our lease signed in August with the Rolls-Royce dealership at our Beverly Hills property, which will start generating revenue in 2023. Trends at our One Hotel continued to improve on a year-over-year basis, and the outlook for 2023 looks strong based on the pickup in group bookings. The third quarter is typically a seasonally slower quarter for the hotel. And in our lending business, we had a slowdown in originations in the quarter due to, among other things, the reduced volume of commercial real estate transactions market-wide.

我們的核心 FFO 在第三季度為負 0.07 美元。雖然我們今年完成了大量新租約，並且擁有強大的租賃渠道，但我們要到明年才能看到全部收益。最值得注意的是，這包括我們於 8 月與比佛利山莊的勞斯萊斯經銷商簽訂的租約，該租約將於 2023 年開始產生收入。我們 One Hotel 的趨勢同比繼續改善，前景根據團體預訂的回升，2023 年的銷量看起來很強勁。第三季度通常是酒店季節性放緩的季度。在我們的貸款業務中，由於全市場商業房地產交易量減少等原因，本季度我們的貸款業務有所放緩。

We also had some onetime costs in our JV property in Echo Park, in addition to some nonrecurring items in our G&A. Finally, the amount of our preferred dividend payment is increasing as a result of the significant amount of preferred stock we raised in the third quarter. Our third quarter FFO picks up dividends we declared in the fourth quarter, even though we did not have the benefit of the capital for the full quarter, and Barry will provide some more detail on these items.

除了 G&A 中的一些非經常性項目外，我們在 Echo Park 的合資財產中也有一些一次性成本。最後，由於我們在第三季度籌集了大量優先股，我們的優先股紅利支付金額正在增加。我們第三季度的 FFO 獲得了我們在第四季度宣布的股息，儘管我們沒有享受到整個季度的資本收益，Barry 將提供有關這些項目的更多細節。

As we've discussed on previous calls, we are committed to balancing our portfolio between both creative office and multifamily assets. Right now, we're focused on growing the multifamily side of our portfolio in order to achieve that balance. We have a significant pipeline of multifamily development opportunities on land but they are already owned. As we have previously mentioned, for value-add and development assets, we'll look to co-invest to increase our diversification and supplement returns by generating fee income or advantageous. We have a lot of work to do in front of us, but we believe we have an opportunity to create significant value for our shareholders by using our resources and access to capital.

正如我們在之前的電話會議上討論的那樣，我們致力於在創意辦公室和多戶資產之間平衡我們的投資組合。現在，我們專注於發展我們投資組合的多戶家庭方面，以實現這種平衡。我們在土地上擁有大量的多戶住宅開發機會，但它們已經擁有。正如我們之前提到的，對於增值和開發資產，我們將尋求共同投資以通過產生費用收入或優勢來增加我們的多元化和補充回報。我們面前有很多工作要做，但我們相信我們有機會通過利用我們的資源和資本渠道為我們的股東創造巨大的價值。

I would now like to turn the call over to Shaul Kuba.

我現在想把電話轉給 Shaul Kuba。

Thank you. I wanted to highlight 2 significant updates in the quarter. First, we leased approximately 59,000 square feet in the third quarter. This was an increase from about 39,000 square feet in the second quarter. Our most notable lease being at our Beverly Hills building, 9460 Wilshire Boulevard. We signed a 20-year lease with Rolls-Royce dealership for approximately 18,000 square feet of the remaining retail. We expect to start to recognize revenue on this lease in 2023.

謝謝。我想強調本季度的 2 個重要更新。首先，我們在第三季度租賃了大約 59,000 平方英尺。這比第二季度的約 39,000 平方英尺有所增加。我們最著名的租約是在我們的比佛利山莊大樓，9460 Wilshire Boulevard。我們與 Rolls-Royce 經銷商簽署了一份為期 20 年的租約，租用剩餘零售店的約 18,000 平方英尺。我們預計將於 2023 年開始確認此項租賃的收入。

Second, we did an extensive review of the portfolio to evaluate where we can create additional value. Based on this review, we believe we can develop over 1,500 multifamily units based on land we already own. This is an exciting update for CMCT, and each shareholder.

其次，我們對投資組合進行了廣泛審查，以評估我們可以在哪些方面創造額外價值。基於這次審查，我們相信我們可以在我們已經擁有的土地上開發超過 1,500 個多戶住宅單元。對於 CMCT 和每位股東來說，這是一個令人興奮的更新。

In Austin, we are evaluating adding 1 or more multifamily building to our 16-acre Penn Field Creative office campus. In June, the City Council approved zoning changes that allow us to add more density on this property, which is located just south of the CBD. We are excited about this potential opportunity at this tremendous campus, which was transformative to this section of Austin. In East Austin, we are working towards multifamily development of 2 adjacent property at 1007 and 1021 East Seventh Street. We submitted our entitlement application in this third quarter. Those properties are very well located with numerous dining and entertainment option within walking distance and within close proximity to Austin CBD, Central Business District.

在奧斯汀，我們正在評估在我們佔地 16 英畝的 Penn Field Creative 辦公園區中增加一棟或多棟多戶住宅。 6 月，市議會批准了分區變更，使我們能夠增加該物業的密度，該物業位於中央商務區以南。我們對這個巨大校園的潛在機會感到興奮，它改變了奧斯汀的這一部分。在東奧斯汀，我們正致力於在東七街 1007 號和 1021 號開發 2 個相鄰物業的多戶住宅。我們在第三季度提交了權利申請。這些物業位置優越，步行即可到達眾多餐飲和娛樂場所，並且靠近中央商務區奧斯汀中央商務區。

We are also working on predevelopment work for potential multifamily development in Oakland and Sacramento. We recently submitted a request to entitle our Oakland development asset for multifamily as it is currently entitled for office. We believe entitling this asset will create incremental value for the land, near term. And in Sacramento, we are evaluating build time multifamily over a large parking garage we already own. Those exciting opportunity are result of the extensive review of this portfolio.

我們還在為奧克蘭和薩克拉門託的潛在多戶住宅開發開展預開發工作。我們最近提交了一項請求，要求將我們的奧克蘭開發資產授權給多戶家庭，因為它目前有權使用辦公室。我們相信，授予該資產的權利將在短期內為土地創造增量價值。在薩克拉門托，我們正在評估我們已經擁有的大型停車場的建造時間多戶住宅。這些令人興奮的機會是對該投資組合進行廣泛審查的結果。

Now for a quick update on some of the value-add and development opportunity we have been working on. At 4750 Wilshire in Los Angeles, we expect to start construction on the conversion of the unleased portion of the building into luxury multifamily rental in early 2023. We anticipate a construction timeline of about 18 months. The total cost of the conversion is expected to be approximately $33 million. We are in active discussion with several institutional coinvestors, and seek to close transaction over the next several months. Since we are expecting to bring co-investor and take a construction loan, we expect CMCT to generate meaningful proceeds from this transaction. CMCT will also earn a management fee on committed equity, and have an opportunity to earn a promote.

現在快速更新一下我們一直在努力的一些增值和發展機會。在洛杉磯的 4750 Wilshire，我們預計將於 2023 年初開始施工，將建築的未出租部分改建為豪華多戶出租屋。我們預計施工時間表約為 18 個月。轉換的總成本預計約為 3300 萬美元。我們正在與幾家機構合作投資者進行積極討論，並尋求在未來幾個月內完成交易。由於我們希望引入共同投資者並獲得建設貸款，我們預計 CMCT 將從此次交易中獲得可觀的收益。 CMCT 還將獲得承諾股權的管理費，並有機會獲得晉升。

As we discussed on our last call, we expect to break ground in 2023 on our 36-unit multifamily property in Echo Park, neighborhood of Los Angeles, at 1910 West Sunset Boulevard, which we acquired with a joint venture partner earlier this year. The asset is located in the middle of a trendy submarket, and part of workable area that also has a dozen of dining and entertainment options. In the Jefferson Park section of Los Angeles, we have made progress on the development of our 2 multifamily property there, where we plan to develop about 150 units across both sides. We are working towards receiving the necessary approval and still expect to break ground on the first site in 2023 and the second site in 2024. We are excited about those developments as they are strategically located in the path of growth in close proximity to Culver City, and just 1.5 miles from the University of Southern California.

正如我們在上次電話會議上討論的那樣，我們預計將於 2023 年在洛杉磯附近的 Echo Park 西日落大道 1910 號的 36 套多戶住宅破土動工，這是我們今年早些時候與一家合資夥伴收購的。該資產位於一個時尚子市場的中間，並且是工作區的一部分，該區還有十幾個餐飲和娛樂選擇。在洛杉磯的杰斐遜公園區，我們在那裡的 2 多戶住宅開發取得了進展，我們計劃在兩側開發約 150 個單元。我們正在努力獲得必要的批准，並預計將於 2023 年在第一個地點破土動工，在 2024 年在第二個地點破土動工。我們對這些開發項目感到興奮，因為它們戰略性地位於靠近卡爾弗城的增長路徑上，距南加州大學僅 1.5 英里。

Right now, we are working hard to go vertical on those projects by getting all the necessary approval as well as completing the design work. Obviously, we will continue to monitor the construction cost as we move forward. Given increased borrowing costs, the lower availability of credit and widening cap rate, we expect that overall development will slow. And as a result, development costs may potentially come down.

目前，我們正在努力通過獲得所有必要的批准並完成設計工作來垂直推進這些項目。顯然，我們將在前進的過程中繼續監控建設成本。鑑於借貸成本增加、信貸可用性下降和上限利率擴大，我們預計整體發展將放緩。因此，開發成本可能會下降。

With that, I will turn the call over to Steve for more detail on the portfolio and recent capital market activity.

有了這個，我將把電話轉給史蒂夫，了解有關投資組合和近期資本市場活動的更多細節。

Thanks, Shaul. Starting off with the portfolio, our stabilized portfolio was 86.5% leased at the end of the third quarter. As Shaul mentioned, we leased approximately 59,000 square feet in the third quarter and at least about 120,000 square feet year-to-date. And as David touched on, we will begin to generate revenue on several of these leases and the leases in our pipeline starting next year. Our cash lease spreads for all recurring leases decreased slightly to negative 1.2% through the first 9 months of 2022. This lease spread excludes our recent retail lease at our Beverly Hills property since the space was vacant for more than 12 months.

謝謝，肖爾。從投資組合開始，我們穩定的投資組合在第三季度末出租了 86.5%。正如 Shaul 提到的，我們在第三季度租賃了大約 59,000 平方英尺，今年迄今至少租賃了約 120,000 平方英尺。正如大衛談到的那樣，我們將從明年開始從其中幾項租約和我們管道中的租約中產生收入。到 2022 年前 9 個月，我們所有經常性租賃的現金租賃利差小幅下降至負 1.2%。該租賃利差不包括我們最近在比佛利山莊物業的零售租賃，因為該空間空置超過 12 個月。

We continue to have a strong pipeline of leasing activity. We have about 50,000 square feet of leases that are either signed in Q4 in LOI or legal, or represent in-place tenants that we expect to renew. We entered this year with nearly 15% of our leases expiring in 2022, which was about 151,000 square feet of expirations. In total, our leases executed in LOI or legal or expected to renew now exceed this amount. Our lease expirations will decline to just 11.9% in 2023, at 6.6% in 2024.

我們繼續擁有強大的租賃活動渠道。我們有大約 50,000 平方英尺的租約，這些租約要么是在第四季度以 LOI 形式簽署的，要么是合法的，或者代表我們希望續約的就地租戶。我們進入今年時有近 15% 的租約將於 2022 年到期，約有 151,000 平方英尺到期。總的來說，我們以意向書或合法或預計續籤的租約現在超過了這個數額。到 2023 年，我們的租約到期率將降至 11.9%，到 2024 年將降至 6.6%。

Turning to our capital markets activity. We announced a $10 million common share repurchase program in the second quarter of 2022. We have repurchased $4.7 million of common stock, including $4.4 million in the third quarter at an average price of $7.10 per share. Also, in the third quarter, we repurchased approximately $67 million of Series L preferred stock at a 3.4% discount stated value. We believe these 2 transactions are highly accretive for our common shareholders.

轉向我們的資本市場活動。我們在 2022 年第二季度宣布了 1000 萬美元的普通股回購計劃。我們已經回購了 470 萬美元的普通股，其中包括第三季度的 440 萬美元，平均價格為每股 7.10 美元。此外，在第三季度，我們以標稱價值 3.4% 的折扣回購了大約 6700 萬美元的 L 系列優先股。我們相信這兩項交易對我們的普通股股東來說具有很高的增值性。

With that, I'll turn it over to Barry.

有了這個，我會把它交給巴里。

Thanks, Steve. First, I'd like to take a moment to thank Nate DeBacker for guiding us the past few years as our CFO and for assisting me through the transition to be your CFO. Nate and I worked closely together, and I will continue to work closely with Nate upon CMCT.

謝謝，史蒂夫。首先，我想花點時間感謝內特·德貝克 (Nate DeBacker) 在過去幾年作為我們的首席財務官指導我們，並協助我完成過渡，成為你們的首席財務官。 Nate 和我密切合作，我將繼續在 CMCT 上與 Nate 密切合作。

Moving on to financial highlights. Our high-level third quarter results are as follows. During the third quarter, our core FFO reduced to a negative $0.07 per diluted share compared to a positive $0.08 in the prior year comparable period. This change was primarily driven by a reduction in segment NOI, and the distributions for our preferred stock issuances. Our segment operations NOI was reduced to $10.1 million compared to $13.3 million in the prior year comparable period. This quarter-over-quarter change is broken out as a $3.7 million reduction in our lending segment NOI, $1 million reduction in our office segment NOI, being partially offset by the positive trend in our hotel segment NOI by $1.5 million.

轉到財務亮點。我們的高水平第三季度業績如下。在第三季度，我們的核心 FFO 減少至攤薄後每股負 0.07 美元，而去年同期為正 0.08 美元。這一變化主要是由於分部 NOI 的減少以及我們優先股發行的分配。我們的部門運營 NOI 減少至 1010 萬美元，而去年同期為 1330 萬美元。這一環比變化被分解為我們的貸款部門 NOI 減少了 370 萬美元，我們的辦公室部門 NOI 減少了 100 萬美元，被我們酒店部門 NOI 的積極趨勢部分抵消了 150 萬美元。

Drilling deeper into our business segments. First, our lending division NOI decreased by around $3.7 million to a more normalized $1.2 million in Q3 2022. It's important to note that in 2021, we had a significant bump in loan originations and loan sales which had significant market premiums. This was due to COVID-driven additional government support of our SBA 7(a) loan product that drove NOI up to $4.9 million last year for the 3 months ended September 30, 2021. That increased government support did end in 2021.

深入研究我們的業務領域。首先，我們的貸款部門 NOI 在 2022 年第三季度減少了約 370 萬美元，達到更正常的 120 萬美元。值得注意的是，在 2021 年，我們的貸款發放和貸款銷售出現了顯著的市場溢價。這是由於 COVID 推動了政府對我們的 SBA 7(a) 貸款產品的額外支持，該產品在截至 2021 年 9 月 30 日的 3 個月內將 NOI 推高至 490 萬美元。增加的政府支持確實在 2021 年結束。

Second, our office segment NOI decreased to $6.5 million from $7.5 million in the prior year period. While the NOI in our same-store office properties remain relatively constant at $6.7 million compared to $6.8 million in the prior year quarterly period, the NOI attributable to our non-same-store properties had a reduction of around $900,000. Also of note is that the office segment reduction included a loss from our JV investment acquired in February this year of around $200,000 for the third quarter of 2022. The JV loss did include a onetime upfront cost related to the JV's mortgage debt origination. Our office segment to continue to see improved activity, and we signed approximately 59,000 square feet of leases during the quarter.

其次，我們的辦公室部門 NOI 從去年同期的 750 萬美元減少到 650 萬美元。雖然我們同店辦公物業的 NOI 與去年同期的 680 萬美元相比保持相對穩定，為 670 萬美元，但我們非同店物業的 NOI 減少了約 900,000 美元。還值得注意的是，寫字樓部門的減少包括我們今年 2 月收購的合資企業投資在 2022 年第三季度的損失約為 200,000 美元。合資企業的損失確實包括與合資企業的抵押貸款債務發起相關的一次性預付費用。我們的辦公部門活動繼續改善，本季度我們簽署了約 59,000 平方英尺的租約。

Third, our hotel segment NOI increased to $2.4 million from around $900,000 in the prior year comparable period. This was driven by improved occupancy, which went up to 74% from 67%, and we saw improved ADR, which increased to around $164 from $137. For our overhead, the largest impact is the reduction in asset management fees, which was reduced to below $900,000 from $2.3 million in the prior year comparable period due to the fee waiver that went into effect January 1, 2022. As a result, our net loss income for the company before preferred equity activity was a loss of $45,000 in Q3 of '22 versus profit of $2.570 million in Q3 of 2021.

第三，我們的酒店部門 NOI 從去年同期的約 900,000 美元增加到 240 萬美元。這是由入住率提高推動的，入住率從 67% 上升到 74%，我們看到 ADR 有所改善，從 137 美元增加到 164 美元左右。對於我們的間接費用，最大的影響是資產管理費用的減少，由於 2022 年 1 月 1 日生效的費用減免，資產管理費用從去年同期的 230 萬美元減少到 900,000 美元以下。因此，我們的淨公司在優先股活動之前的虧損收入是 22 年第三季度虧損 45,000 美元，而 2021 年第三季度利潤為 257 萬美元。

Below the company net loss income line, we record our preferred stock activity. In September 2022, we repurchased a portion of our L shares and had $4.8 million in deemed dividends impacting our bottom line due to the expensing of upfront costs from when we issued those securities. We also had declared or accumulated preferred stock dividends of approximately $6.6 million in the quarter compared to $4.7 million in the prior year comparable period. This increase is relating to the new issuances of Series A and Series A1 preferred securities. This includes the impact of forward dividends declared for the fourth quarter of around $1.3 million relating to our preferred issuance during the third quarter of 2022.

在公司淨虧損收入線下方，我們記錄了我們的優先股活動。 2022 年 9 月，我們回購了部分 L 股，由於我們發行這些證券時的前期成本支出，有 480 萬美元的視同股息影響了我們的底線。我們還在本季度宣布或累積了約 660 萬美元的優先股股息，而去年同期為 470 萬美元。這一增長與 A 系列和 A1 系列優先證券的新發行有關。這包括與我們在 2022 年第三季度發行的優先股有關的第四季度約 130 萬美元遠期股息的影響。

As David noted, our preferred cash dividends paid were approximately $5.3 million, were also about $1.3 billion less than what runs through our net income available for our common shareholders.

正如大衛指出的那樣，我們支付的優先現金股息約為 530 萬美元，也比我們普通股股東可獲得的淨收入少約 13 億美元。

Turning to our liquidity. We had approximately $85 million strong on our revolver at the end of the quarter with an estimated $120 million of availability as of September 30. Our credit facility has extended matures in late 2023. We expect to close on a recast of the facility shortly, which should extend the facility another 3 years, plus we'll have the option for 2 1-year extension options. Finally, we generated around $57 million of cash proceeds from preferred stock issued in the third quarter, which is the largest quarterly amount since the Series A prefers have been offered, and momentum continuing into the fourth quarter with proceeds of $38 million in October, giving us additional financial flexibility.

轉向我們的流動性。截至本季度末，我們的左輪手槍餘額約為 8500 萬美元，截至 9 月 30 日估計可用資金為 1.2 億美元。我們的信貸額度已延長至 2023 年底到期。我們預計很快將完成對額度的重鑄，這應該將設施再延長 3 年，此外我們還可以選擇 2 個 1 年的延期選項。最後，我們從第三季度發行的優先股中獲得了約 5700 萬美元的現金收益，這是自發行 A 系列優先股以來的最大季度金額，並且勢頭持續到第四季度，10 月份的收益為 3800 萬美元，給我們額外的財務靈活性。

With that, I will now turn the call over to David for some closing remarks.

有了這個，我現在將把電話轉給大衛做一些結束語。

Thanks, Barry. In closing, I'd like to reiterate our key strategic goals. First, continue to make tangible progress on our stabilized and value-add assets as well as our development pipeline. We believe our asset-light approach will enable us to generate strong returns on invested capital. Second, we are focused on creating greater financial flexibility. As Barry mentioned, we are working to recast our credit facility, which matures in late 2023, and expect to close a new facility in the fourth quarter.

謝謝，巴里。最後，我想重申我們的關鍵戰略目標。首先，繼續在我們的穩定和增值資產以及我們的開發管道上取得切實進展。我們相信，我們的輕資產方法將使我們能夠產生可觀的投資資本回報。其次，我們專注於創造更大的財務靈活性。正如 Barry 所提到的，我們正在努力重組將於 2023 年底到期的信貸安排，並預計將在第四季度關閉一項新安排。

We raised approximately $46.5 million in net proceeds from our Series A1 preferred stock so far in the fourth quarter, further enhancing our flexibility. This allows us to take advantage of potential acquisition opportunities or opportunities in the capital markets like we have seen of late.

到目前為止，第四季度我們從 A1 系列優先股中籌集了大約 4650 萬美元的淨收益，進一步提高了我們的靈活性。這使我們能夠利用我們最近看到的潛在收購機會或資本市場機會。

Third, we're working to keep our cost structure in check, including the continued benefits of our reduced management fee announced earlier this year. That reduction amounts to approximately $0.21 per share in annual cost savings. We are also focused on keeping our recurring G&A expenses down.

第三，我們正在努力控制我們的成本結構，包括今年早些時候宣布的降低管理費帶來的持續好處。這一減少相當於每股每年節省約 0.21 美元的成本。我們還專注於降低經常性 G&A 費用。

Fourth, we're shifting the balance of the portfolio more towards multifamily and creative office over time. Taken together, we believe these priorities combined into a compelling business model for CMCT, which will provide strong returns on capital and a model where CIM Group's distribution and development capabilities provide a significant competitive advantage. CIM has more than 180 global institutional investors. It has developed over $11 billion of assets across the United States, and has more than 100 professionals in our development group with expertise in urban planning, construction, design, architecture, engineering and project management.

第四，隨著時間的推移，我們正在將投資組合的平衡更多地轉向多家庭和創意辦公室。總而言之，我們認為這些優先事項結合在一起成為 CMCT 引人注目的商業模式，這將提供強勁的資本回報和 CIM Group 的分銷和開發能力提供顯著競爭優勢的模式。 CIM 在全球擁有 180 多家機構投資者。它在全美開發了超過 110 億美元的資產，我們的開發團隊擁有 100 多名在城市規劃、建設、設計、建築、工程和項目管理方面具有專業知識的專業人員。

To wrap up, we have great assets in highly desirable submarkets such as Beverly Hills, Culver City, Hollywood and Austin. We are encouraged by the pickup in our leasing activity and declines in expirations as we head into 2023 and 2024.

總而言之，我們在比佛利山莊、卡爾弗城、好萊塢和奧斯汀等備受青睞的子市場擁有大量資產。隨著我們進入 2023 年和 2024 年，我們的租賃活動有所增加，到期情況有所減少，這讓我們感到鼓舞。

We have a very attractive growth pipeline where we are making tangible progress in development and construction activities. We look forward to sharing more updates on future calls. For value-add and development assets, we will see co-investors to increase our diversification and supplement returns by generating fee income. And finally, we have significantly reduced our cost structure.

我們有一個非常有吸引力的增長渠道，我們正在開發和建設活動中取得切實進展。我們期待在未來的通話中分享更多更新。對於增值和開發資產，我們將看到共同投資者通過產生費用收入來增加我們的多元化和補充回報。最後，我們顯著降低了成本結構。

Operator, you may now open the call to questions.

接線員，您現在可以打開問題電話。

(Operator Instructions)

（操作員說明）

Today's first question comes from Gaurav Mehta with EF Hunton.

今天的第一個問題來自 EF Hunton 的 Gaurav Mehta。

I wanted to ask you about your development pipeline and your comments on the capital is expanding for multifamily. Can you maybe help us understand how you're viewing acquisition opportunities given that CapEx are expanding? And how does that compare to the yields that you're getting on your development pipeline?

我想問你關於你的開發管道，你對資本的評論正在擴大多戶家庭。鑑於資本支出正在擴大，您能否幫助我們了解您如何看待收購機會？這與您在開發流程中獲得的收益相比如何？

Yes, sure. This is Steve. So I think with respect to the development pipeline and the yields that we're looking to build to -- given the move that we've seen in cap rates, clearly, that hurdle has increased, but you're also seeing in the market continued rent growth and our expectations that development cost could come down as well.

是的，當然。這是史蒂夫。所以我認為關於開發管道和我們希望建立的收益率——鑑於我們在資本化率方面看到的變化，顯然，這個障礙已經增加，但你也在市場上看到持續的租金增長以及我們對開發成本也可能下降的預期。

So generally speaking, for multifamily, and it depends a little bit on the market but we're generally trying to get to about a 6% return on cost with -- and given the increase in market cap rates, that's still a wide enough spread that you're still creating pretty meaningful value through development. But at the same time, we're continuing to also look for not only in development but given the moving cap rates, we're looking for stabilized and multifamily -- I'm sorry, stabilized and some value-add multifamily deals as well, whereas a year ago, those deals were just very difficult to find, given where cap rates are. And now we think we're going to see a little bit more opportunities on the more stabilized side.

所以一般來說，對於多戶家庭來說，這在一定程度上取決於市場，但我們通常試圖獲得大約 6% 的成本回報率——並且考慮到市值率的增加，這仍然是一個足夠廣泛的差價您仍在通過開發創造非常有意義的價值。但與此同時，我們不僅在開發中還在繼續尋找，而且考慮到移動資本化率，我們正在尋找穩定的和多戶家庭——對不起，穩定的和一些增值的多戶家庭交易，而一年前，考慮到資本化率，這些交易很難找到。現在我們認為我們會在更穩定的方面看到更多的機會。

Okay. On your preferred stock capital raising, can you maybe talk about the uses of the cash that you're generating in 4Q? I think as earnings release, you guys said $46 million of preferred stock raise in 4Q. How do you plan to use that? You plan to carry that cash on the balance sheet or deploy that towards acquisitions?

好的。關於你的首選股票融資，你能談談你在第四季度產生的現金的用途嗎？我認為隨著收益發布，你們說第四季度優先股籌集了 4600 萬美元。你打算如何使用它？您打算將現金計入資產負債表還是用於收購？

Yes, I can talk about that a little bit. So I mean the -- we have some amounts outstanding under our revolving credit facility. So we can immediately use the cash to pay that down. As you know, we've got our Series L preferred which can be redeemed late in the fourth quarter. That's about roughly $80 million of use to the extent we decided to use cash for that. As you know, we have the option to redeem that in shares given where the share is trading today that would be highly unlikely. So we will -- again, we'll have a use for some of that cash to help us, again, pay down the revolver and then also to the extent we decided to use cash for the redemption of the Series L preferred later this quarter.

是的，我可以稍微談談這個。所以我的意思是 - 我們的循環信貸額度下有一些未償還的款項。所以我們可以立即用現金支付首付。如您所知，我們有 L 系列優先股，可以在第四季度末贖回。就我們決定為此使用現金而言，這大約是 8000 萬美元的使用量。如您所知，我們可以選擇以股票的形式贖回，因為今天的股票交易情況極不可能發生。因此，我們將 - 再一次，我們將使用其中一些現金來幫助我們再次支付左輪手槍，然後我們決定使用現金來贖回本季度晚些時候首選的 L 系列.

And again, as we spoke to, there's a number of other opportunities where we think we can continue to generate cash and strengthen our liquidity. We expect the preferred volume is going to continue to be strong as it has been far in the fourth quarter. Again, we're renegotiating our facility, expect to have the new facility in place this quarter. The co-invest that Shaul spoke about. And again, I think all that helps position us for taking advantage of some of the growth that we've got built into our pipeline and again, looking at other opportunities.

而且，正如我們所說，還有許多其他機會，我們認為我們可以繼續產生現金並加強我們的流動性。我們預計首選銷量將繼續保持強勁勢頭，因為它在第四季度一直如此。同樣，我們正在重新談判我們的設施，預計本季度將有新設施到位。 Shaul 談到的共同投資。再一次，我認為所有這些都有助於我們利用我們已經建立在管道中的一些增長，並再次尋找其他機會。

The next question comes from Eric Speron with First Foundation.

下一個問題來自 First Foundation 的 Eric Speron。

Guys, can you hear manufacturer?

伙計們，你能聽到製造商的聲音嗎？

Yes.

是的。

Great. So my question is on multifamily, specifically Oakland. There's the things that you filed, they're pretty exciting, 46 storey, 600 units. So it's a huge chunk of your multifamily opportunity, something like 40%. So the question is, can you just give us a little bit more color? I see it's near some opportunity zones. I don't know if it's in one. I don't -- maybe talk about what amount of capital is the right amount of capital for you guys to contribute. And what would you target bringing it from outside, but maybe just address Oakland multifamily.

偉大的。所以我的問題是關於多戶家庭，特別是奧克蘭。這是你提交的東西，它們非常令人興奮，46 層樓，600 個單位。所以這是你的多戶家庭機會的很大一部分，大約 40%。所以問題是，你能給我們多一點顏色嗎？我看到它靠近一些機會區。不知道是不是一個我不 - 也許談論多少資本是你們貢獻的合適資本數額。你的目標是從外面帶來什麼，但也許只是解決奧克蘭多戶家庭問題。

Yes. Let me answer. This is Shaul. The land that we own in Oakland is prime for entitlement for multifamily. The office market in Oakland is pretty, I would say, at the moment, saturated with vacancy. So we decided to take advantage of the existing entitlement that we have converting them to multifamily. We're probably going to be done with that process in about 18 months to 24 months. And at that point, we're going to evaluate how much co-invest to raise for that project. We own the land free and clear, so we don't have any debt. Our (inaudible) is very low, and the intent is to raise co-invest for it when we're ready to present it.

是的。讓我回答。這是沙烏爾。我們在奧克蘭擁有的土地是多戶家庭權利的首選。奧克蘭的寫字樓市場非常漂亮，我想說，目前，空置率已經飽和。因此，我們決定利用我們已將它們轉換為多戶家庭的現有權利。我們可能會在大約 18 到 24 個月內完成該流程。屆時，我們將評估為該項目籌集多少共同投資。我們擁有自由和乾淨的土地，所以我們沒有任何債務。我們的（聽不清）非常低，目的是在我們準備好展示它時為其籌集共同投資。

And just quick clarification. Is it in the opportunity zone there? Or is it a fallout side? It's hard to see on the maps.

并快速澄清一下。它在機會區嗎？或者這是一個後果？在地圖上很難看到。

I don't think it's an opportunity zone. But I don't know for a fact. Maybe, Steve, you know? I don't know.

我不認為這是一個機會區。但我不知道事實。也許，史蒂夫，你知道嗎？我不知道。

Yes. Some is (inaudible) but I can see the cross.

是的。有些是（聽不清），但我可以看到十字架。

Yes, I don't believe it's in, but either way, would not have much of a benefit for us.

是的，我不相信它存在，但無論哪種方式，都不會給我們帶來太多好處。

This concludes our question-and-answer session as well as our conference. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節和會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。