Creative Media & Community Trust Corporation (CMCT) 2024 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Creative Media & Community Trust fourth quarter 2024 earnings conference call. (Operator Instructions) Please also note, today's event is being recorded.

大家早安，歡迎參加創意媒體與社區信託 2024 年第四季財報電話會議。（操作員指示）另請注意，今天的活動正在被記錄。

At this time, I'd like to turn the floor over to Stephen Altebrando, Portfolio Oversight. Sir, you may begin.

現在，我想把發言權交給投資組合監督部門的 Stephen Altebrando。先生，您可以開始啦。

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 Berlin, our Chief Financial Officer. .

大家好，感謝大家的參與。我叫 Steve Altebrando，負責 CMCT 的投資組合監督。參加今天電話會議的還有我們的執行長 David Thompson；以及我們的財務長 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. Our earnings release includes a reconciliation of non-GAAP financial measures discussed during today's call.

本次電話會議將進行網路直播，並將暫時存檔於我們網站的「投資者關係」部分，您也可以在那裡找到我們的收益報告。我們的收益報告包括今天電話會議上討論的非公認會計準則財務指標的對帳。

During 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 other factors that are beyond our control or ability to predict.

在本次電話會議中，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、假設和目前可用的資訊。我們的實際結果將受到已知和未知的風險、趨勢、不確定性和其他超出我們控製或預測能力的因素的影響。

Although we believe 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.

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，而且有些假設將被證明是不正確的。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，請參閱我們的 SEC 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.

說完這些，我將把電話轉給大衛湯普森。

Thanks, Steve, and thank you to everyone for joining our call today. I'd like to take a moment to give an update on the progress of our strategic initiatives, and then I'll go over our quarterly results.

謝謝，史蒂夫，也謝謝大家今天參加我們的電話會議。我想花點時間介紹一下我們的策略舉措的進展情況，然後我將介紹我們的季度業績。

As we have discussed on previous calls, we remain focused on improving our balance sheet and liquidity and growing our multifamily portfolio as well as reducing our traditional office assets. In September, we announced actions to address these priorities. Specifically, we announced our intention to place property-level financing on several of our assets and used the proceeds to fully repay and retire our recourse corporate-level credit facility.

正如我們在先前的電話會議上所討論的那樣，我們仍然專注於改善我們的資產負債表和流動性，增加我們的多戶型投資組合，以及減少我們的傳統辦公資產。今年9月，我們宣布了解決這些優先事項的行動。具體來說，我們宣布了對我們的幾項資產進行房地產層面融資的意圖，並利用所得款項全額償還和贖回我們的追索權公司層面信貸額度。

We made significant progress on this, closing three mortgages since November. And we have used a substantial portion of the proceeds to reduce the balance outstanding on our credit facility, which is now $15 million, down from $169 million at the end of the third quarter. We're working to complete one additional financing, which we expect to close over the coming months that we expect will provide sufficient proceeds to complete the repayment and full retirement of this recourse credit facility.

我們在這方面取得了重大進展，自11月以來已結清了三筆抵押貸款。我們已使用大部分收益來減少信貸額度的未償還餘額，目前該餘額為 1,500 萬美元，低於第三季末的 1.69 億美元。我們正在努力完成一筆額外融資，預計該融資將在未來幾個月內完成，我們預計這將提供足夠的收益來完成這筆追索權信貸額度的償還和全額贖回。

We are pleased to have made progress on these transactions, particularly in an environment that is very challenging to finance office properties. After we complete this process, the only corporate debt remaining will be our $27 million junior subordinated notes, which have about 10 years of term remaining and no corporate covenants.

我們很高興在這些交易中取得了進展，特別是在辦公大樓融資非常困難的環境下。完成這項程序後，剩下的唯一公司債務將是價值 2,700 萬美元的次級債券，這些債券剩餘期限約為 10 年，且沒有公司契約。

We also continue to evaluate asset sales with a goal of strengthening our balance sheet, improving our liquidity and growing our portfolio of premier multifamily assets.

我們也將繼續評估資產出售，目標是加強我們的資產負債表，提高我們的流動性，並擴大我們的優質多戶型資產組合。

Turning to our fourth quarter results. Our core FFO improved by approximately $4.5 million from the prior quarter, primarily due to higher NOI, lower interest expense and lower preferred dividends, which was due to the redemption of preferred shares in the third quarter.

談談我們第四季的業績。我們的核心 FFO 較上一季增加了約 450 萬美元，主要原因是 NOI 增加、利息支出減少以及優先股股息減少（由於第三季贖回優先股）。

Our net operating income increased by $1.6 million from the third quarter, primarily due to our Hotel segment, which increased $1.1 million. Our lending and multifamily divisions generated small increases in NOI, while our Office segment had a small quarter-over-quarter decline in NOI.

我們的淨營業收入較第三季增加了 160 萬美元，主要因為飯店部門增加了 110 萬美元。我們的貸款和多戶型部門的淨營運收入小幅增加，而我們的辦公部門的淨營運收入則是環比小幅下降。

With that, I will turn it over to Steve to provide a further update on our development pipeline, the portfolio and our co-investment activity.

接下來，我將把話題轉交給史蒂夫，讓他進一步介紹我們的開發管道、投資組合和共同投資活動的最新情況。

Thanks, David. I would like to provide some more details on the refinancings that David referenced. In November, we closed a mortgage of up to $92.2 million on our Sheraton Grand Hotel in Sacramento. Proceeds were primarily used to pay down our credit facility and to fund the previously discussed $21 million room renovation of all 505 rooms at the property that is now complete. We anticipate starting a renovation of the public space later this year. The next phase of the renovation will be funded using proceeds from operations, future funding from the loan and $8 million of key money we will receive as part of the extension of our management agreement with Marriott.

謝謝，大衛。我想提供一些有關戴維提到的再融資的更多細節。11 月份，我們為位於薩克拉門託的喜來登大酒店辦理了高達 9,220 萬美元的抵押貸款。所得款項主要用於償還我們的信貸額度，以及資助之前討論過的該酒店所有 505 間客房的 2100 萬美元客房翻新工程（現已完工）。我們預計今年稍後開始對公共空間進行翻新。下一階段的翻修工程將使用營運收益、未來貸款資金以及我們與萬豪延長管理協議後收到的 800 萬美元禮金來資助。

In December, we closed on a $105 million mortgage on our three property Wilshire portfolio in Los Angeles, which includes high-quality office assets at 11600, 11620 and 9460 Wilshire Boulevard in Brentwood and Beverly Hills. We primarily used the proceeds to pay down our credit facility as well as to establish a reserve for lease-up costs.

12 月份，我們完成了對位於洛杉磯的三個威爾希爾地產組合的 1.05 億美元抵押貸款，其中包括位於布倫特伍德和比佛利山莊威爾希爾大道 11600 號、11620 號和 9460 號的優質辦公資產。我們主要使用所得收益來償還信貸以及建立租賃成本儲備。

In February, we closed a $5 million mortgage on 8944 Lindblade, a Creative office building in Culver City that has a new 10-year lease in place. Proceeds will be used for tenant improvements on the new lease and general corporate purposes.

2 月份，我們完成了對 8944 Lindblade 的 500 萬美元抵押貸款，這是卡爾弗城的一棟創意辦公大樓，已簽訂了一份為期 10 年的新租約。所得收益將用於新租約中的租戶改善和一般公司用途。

As David mentioned, we have made significant progress reducing the balance on our recourse credit facility. In addition, we are in the process of financing 3601 South Congress, also called Penfield, our creative office campus in Austin, Texas, which we expect to complete over the coming months. The proceeds are expected to be used to retire our credit facility.

正如大衛所提到的，我們在減少追索信貸額度的餘額方面取得了重大進展。此外，我們正在為位於德克薩斯州奧斯汀的創意辦公園區 3601 South Congress（也稱為 Penfield）進行融資，預計將在未來幾個月內完工。預計所得收益將用於償還我們的信貸額度。

Turning to our multifamily results. NOI modestly increased from the prior quarter, while total occupancy declined about 220 basis points from the prior quarter, it increased 240 basis points year-over-year. We are making progress on our lease-up of 701 South Hudson in Los Angeles. Residential portion of our partial office to residential top 2-floor conversion of 4750 Wilshire. The ground floor creative office space is 100% leased, and the top 2 floors were converted to 68 high-end residential units. Residential portion of the property is now 40% leased compared to 10% on our last call. The asset is located in Hancock Park, an affluent residential submarket of L.A. where housing is supply constrained.

轉向我們的多戶型結果。NOI 較上一季略有增加，總入住率較上一季下降約 220 個基點，但較去年同期增加 240 個基點。我們在洛杉磯南哈德遜街 701 號的租賃工作正在取得進展。我們將 4750 Wilshire 的部分辦公室頂樓 2 樓改建為住宅區。一樓創意辦公空間已100%出租，上面兩層樓改建為68個高級住宅單元。該物業的住宅部分目前已出租 40％，而我們上次統計時該數字為 10％。該資產位於漢考克公園，這是洛杉磯一個富裕的住宅子市場，住房供應有限。

We currently have one development underway, 1915 Park, which is a seven story 36-unit ground-up multifamily development in Echo Park Los Angeles, a thriving walkable submarket with numerous dining and entertainment options. This project is a joint venture with an international pension fund and is being developed on land adjacent to our office building at 1910 West Sunset. We continue to expect to deliver the asset midyear.

我們目前正在進行一個開發項目，即 1915 Park，這是一棟七層、36 個單元的從頭開始的多戶型開發項目，位於洛杉磯迴聲公園，這是一個繁榮的步行子市場，擁有眾多餐飲和娛樂選擇。該項目是與國際退休基金的合資項目，正在我們位於西日落大道 1910 號辦公大樓附近的土地上開發。我們仍預計在年中交付該資產。

Turning to our Office segment. We executed nearly 176,000 square feet of leases in the fourth quarter as we extended our largest tenant at the end of 2027. Our office lease percentage was 71% at the end of the fourth quarter. When excluding our one office building in Oakland, our lease percentage is 82% at the end of the fourth quarter.

轉向我們的 Office 部分。由於我們最大的租戶於 2027 年底續約，我們在第四季度執行了近 176,000 平方英尺的租約。截至第四季末，我們的辦公室租賃率為71%。如果不包括我們位於奧克蘭的一棟辦公大樓，截至第四季末，我們的租賃率為 82%。

Our occupancy has been impacted by work-from-home trends and challenges in the Bay Area. However, we would note that leasing activity has been steadily picking up, particularly at our L.A. and Austin assets.

我們的入住率受到了灣區在家工作趨勢和挑戰的影響。然而，我們注意到租賃活動一直在穩步回升，尤其是在洛杉磯和奧斯汀的資產。

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

說完這些，我會把話題交給巴里。

Thank you, Steve. Good morning. I'm going to spend a few minutes going over the financial highlights for the fourth quarter 2024, starting with our segment NOI, which was $9.2 million for the fourth quarter of 2024, compared to $10.8 million in the prior year comparable period.

謝謝你，史蒂夫。早安.我將花幾分鐘時間回顧 2024 年第四季的財務亮點，首先是我們的分部淨營業利潤，2024 年第四季的淨營業利潤為 920 萬美元，而去年同期為 1,080 萬美元。

Broken down by segment, the decrease of $1.6 million was driven by decreases of $193,000 from our office properties, $254,000 from multifamily properties, $828,000 from our hotel business and $331,000 from our lending business.

按部門劃分，減少 160 萬美元是由於辦公物業減少 193,000 美元、多戶型物業減少 254,000 美元、酒店業務減少 828,000 美元以及貸款業務減少 331,000 美元。

Our office segment NOI for Q4 2024 was $5.2 million versus $5.4 million during Q4 2023. The slight drop was driven by a decrease in rental revenue at our office property in Oakland, California, attributable to a decrease in occupancy resulting from a large tenant exercising a partial lease termination option. This decrease was partially offset by our unconsolidated office entities, which collectively experienced a decrease in the net unrealized loss on their investments in real estate compared to the prior year period.

我們辦公室部門 2024 年第四季的淨營業收入為 520 萬美元，而 2023 年第四季為 540 萬美元。輕微下降的原因是我們位於加州奧克蘭的辦公大樓租金收入下降，原因在於一家大型租戶行使部分終止租約的選擇權導致入住率下降。這一減少被我們的非合併辦公實體部分抵消，與去年同期相比，這些實體在房地產投資上的淨未實現損失有所減少。

For our Multifamily segment, we reported segment NOI of approximately $855,000 during Q4 2024, compared to approximately $1.1 million for the prior year comparable period. The decrease was primarily due to an unrealized loss on investment in real estate and one of our unconsolidated joint ventures during the fourth quarter of 2024.

對於我們的多戶型住宅部門，我們報告 2024 年第四季的部門淨營運收入約為 855,000 美元，而去年同期約為 110 萬美元。下降主要是由於 2024 年第四季對房地產和我們的一家非合併合資企業的投資產生了未實現損失。

Due to construction related to hotel renovations that began in the third quarter of 2024, our hotel operations had decreased occupancy causing a drop in NOI of approximately $828,000 to $2.1 million for the fourth quarter of 2024, compared to $2.9 million in the prior year comparable period.

由於 2024 年第三季開始的飯店裝修相關施工，我們的飯店營運入住率下降，導致 2024 年第四季的 NOI 下降約 828,000 美元至 210 萬美元，而去年同期為 290 萬美元。

And our lending division NOI decreased to $980,000 from $1.3 million in the prior year comparable period, primarily due to a decrease in premium income and a decrease in interest income as a result of lower loan originations and loan sale volume.

我們貸款部門的淨營業收入從去年同期的 130 萬美元降至 98 萬美元，主要原因是貸款發放量和貸款銷售量下降導致保費收入和利息收入減少。

Our below the NOI line activity was relatively flat when comparing the fourth quarter of 2024 to last year. We had an increase in depreciation and amortization of $1.6 million, which was driven by additions to our fixed assets resulting from capital expenditures during 2023 and 2024, as well as a loss on early extinguishment of debt of $1.4 million related to the paydown of the majority of our revolver during the current quarter in advance of its maturity.

與去年相比，2024 年第四季我們的 NOI 線以下活動相對穩定。我們的折舊和攤銷增加了 160 萬美元，這是由於 2023 年和 2024 年資本支出導致的固定資產增加，以及與本季度提前償還大部分循環信貸相關的 140 萬美元提前清償債務損失。

These reductions to our NOI were partially offset by a decrease in interest expense not allocated to our operating segments of around $1.1 million due mostly to a decrease in aggregate fund-level and property-level debt outstanding, a decrease in transaction-related costs of $1 million and a decrease in G&A expenses of $800,000.

我們的淨營業收入的減少部分被未分配給我們經營分部的利息支出減少約 110 萬美元所抵消，這主要歸因於基金層面和財產層面未償還債務總額的減少、交易相關成本的減少 100 萬美元以及一般行政費用的減少 80 萬美元。

Our FFO was negative $8.7 million or negative $0.93 per diluted share compared to negative $9.9 million or negative $4.07 per diluted share in the prior year comparable period. And our core FFO was negative $7 million or negative $0.75 per diluted share compared to negative $8.4 million or negative $3.46 per diluted share in the prior year comparable period. The increase in FFO and core FFO was primarily due to a decrease in redeemable preferred stock dividends of approximately $1.3 million.

我們的 FFO 為負 870 萬美元或每股攤薄收益負 0.93 美元，而去年同期的 FFO 為負 990 萬美元或每股攤薄收益負 4.07 美元。我們的核心 FFO 為負 700 萬美元，即每股攤薄收益負 0.75 美元，而去年同期的核心 FFO 為負 840 萬美元，即每股攤薄收益負 3.46 美元。FFO 和核心 FFO 的增加主要是由於可贖回優先股股息減少約 130 萬美元。

Finally, we are seeking shareholder approval to do a 1 for 25 reverse stock split. While our recent preferred common redemptions improved our cash flow, liquidity and balance sheet, it also increased the amount of common shares outstanding contributing to a lower stock price.

最後，我們正在尋求股東批准 1 比 25 的反向股票分割。雖然我們最近的優先普通股贖回改善了我們的現金流量、流動性和資產負債表，但也增加了流通在外的普通股數量，導致股價下跌。

With that, we can now open the line for questions.

這樣，我們現在就可以開始回答問題了。

Ladies and gentlemen, at this time, we'll begin the question-and-answer session. (Operator Instructions)

女士們、先生們，現在我們開始問答環節。（操作員指令）

I'm showing no questions at this time, we will close today's question-and-answer session as well as today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.

我目前沒有任何問題，我們將結束今天的問答環節以及今天的電話會議。我們非常感謝您參加今天的演講。現在您可以斷開線路了。