Creative Media & Community Trust Corporation (CMCT) 2025 Q2 法說會逐字稿

Good day, and welcome to the Creative Media & Community Trust Corporation second quarter 2025 earnings call. (Operator Instructions). Please note this event is being recorded.

大家好，歡迎參加創意媒體與社區信託公司 2025 年第二季財報電話會議。（操作員指令）。請注意，此事件正在被記錄。

I would now like to turn the conference over to Steve Altebrando. Steve, please go ahead.

現在我想將會議交給史蒂夫·阿爾特布蘭多。史蒂夫，請繼續。

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. 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.

大家好，感謝大家的參與。我叫史蒂夫‧阿爾特布蘭多 (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戴維湯普森 (David Thompson) 和財務長巴里柏林 (Barry Berlin)。本次電話會議正在進行網路直播，並將暫時存檔在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中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. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some prove to be incorrect.

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、不確定性以及其他我們無法控製或預測的因素的影響。儘管我們認為我們的假設是合理的，但它們並不能保證未來的表現，而且有些假設被證明是不正確的。

Therefore, 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.

因此，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'll start with an update on business trends. The progress we're making with our strategic initiatives and then walk through our results for the quarter. Last quarter, we noted that we were seeing an uptick in our office leasing pipeline. We are pleased that this has translated into a significant increase in leasing activity.

謝謝，史蒂夫，也謝謝大家今天參加我們的電話會議。我首先會介紹一下商業趨勢的最新情況。我們的策略性舉措正在取得進展，然後介紹本季的成果。上個季度，我們注意到辦公室租賃業務增加。我們很高興看到租賃活動顯著增加。

In 2025, we executed approximately 140,000 square feet of leases through the end of July. This represents an over 55% increase from the prior year period. This activity is primarily driven from our Los Angeles and Austin properties. At the same time, we continue to see uneven demand at our three Oakland assets, two of which are premier Class A multifamily assets. We're working hard to drive occupancy and contain costs and are encouraged by market improvements in the adjacent San Francisco market.

2025 年，截至 7 月底，我們簽訂了約 14 萬平方英尺的租約。這比去年同期增長了 55% 以上。此項活動主要由我們位於洛杉磯和奧斯汀的物業推動。同時，我們繼續看到奧克蘭三處資產的需求不均衡，其中兩處是頂級 A 級多戶型資產。我們正在努力提高入住率並控製成本，鄰近的舊金山市場的改善也讓我們感到鼓舞。

Historically, Oakland has followed the San Francisco market. We remain focused on executing the full scope of the business plan we previously laid out. Today, our key areas of focus are improving our balance sheet and liquidity, improving property level performance and evaluating asset sales as part of our broader strategic plan.

從歷史上看，奧克蘭一直追隨舊金山市場。我們仍然專注於執行我們之前製定的全部業務計劃。今天，我們的重點關注領域是改善資產負債表和流動性、提高房地產水平表現以及評估資產銷售，這是我們更廣泛戰略計劃的一部分。

In terms of our balance sheet and liquidity, we are pleased that we continue to make significant progress on the goals we outlined last September. Since then, we have successfully secured property level -- in several of our assets. The proceeds from these financings have allowed us to fully replay and retire our recourse credit facility, which carried a balance of approximately $169 million at the end of the third quarter of 2024.

就我們的資產負債表和流動性而言，我們很高興看到我們在去年 9 月概述的目標上繼續取得重大進展。自那時起，我們已成功確保了多項資產的產權水準。這些融資所得使我們能夠完全重播和退出我們的追索權信貸額度，截至 2024 年第三季末，該額度的餘額約為 1.69 億美元。

In addition, the financings have supported key growth initiatives, including lease-up efforts at our Beverly Hills, Culver City, Brentwood and Austin properties and renovations at our hotel property in Sacramento. We have also made significant progress in addressing our near-term debt maturities.

此外，這些融資還支持了關鍵的成長計劃，包括我們在比佛利山莊、卡爾弗城、布倫特伍德和奧斯汀的物業的租賃工作以及我們在薩克拉門託的酒店物業的翻新。我們在解決近期債務到期問題方面也取得了重大進展。

Specifically, we extended the debt maturity on our multifamily property at 1150 clay in the Bay Area to the summer of 2026 and earlier this month, we closed on a modification of our other multifamily property in the Bay Area channel house that pushes its maturity to January 2027. In addition, in June, our Lending division closed a $20 million revolving credit facility to help support originations. These actions further enhance our financial flexibility as we continue executing on our strategic plan.

具體來說，我們將位於灣區 1150 clay 的多戶住宅物業的債務到期日延長至 2026 年夏季，本月初，我們完成了對灣區海峽房屋的另一處多戶住宅物業的改造，將其到期日推遲至 2027 年 1 月。此外，6 月份，我們的貸款部門關閉了 2,000 萬美元的循環信貸額度，以幫助支持貸款發放。隨著我們繼續執行策略計劃，這些舉措進一步增強了我們的財務靈活性。

With respect to improving property level performance. I'll start with our long-standing goal to grow the multifamily portion of the portfolio, including joint ventures, we now have four operating assets, 1150 Clay and Channel house in the Bay Area, and 701 South Hudson and 1902 Park Avenue in Los Angeles. Our fifth 1915 Park in Los Angeles remains on track to deliver this quarter.

關於提高物業層面的績效。我首先要談談我們的長期目標，擴大投資組合中的多戶型部分，包括合資企業，我們現在有四個營運資產，即灣區的 1150 Clay 和 Channel house，以及洛杉磯的 701 South Hudson 和 1902 Park Avenue。我們位於洛杉磯的第五個 1915 公園仍將按計劃於本季交付。

We believe there is significant opportunity to grow our multifamily net operate -- through marking rents to the current market, improving occupancy and in costs. The delivery of 1915 Park this quarter will also support improved NOI in this segment.

我們相信，透過根據當前市場調整租金、提高入住率和降低成本，我們的多戶型淨營運有很大的發展機會。本季度 1915 Park 的交付也將有助於提高該領域的 NOI。

In our office segment as I noted earlier, we've seen a sharp increase in leasing activity in the first half of the year with this momentum continuing in July. We believe the headwinds stemming from the pandemic are largely behind us, and we are starting to see sustained return to office tailwinds.

正如我之前提到的，在我們的辦公大樓領域，我們看到今年上半年的租賃活動急劇增加，並且這種勢頭在 7 月仍在繼續。我們相信，疫情帶來的不利因素已基本消除，我們開始看到持續的復工復產順風。

In our hotel segment, as you know, we recently completed the renovation of all 500-plus guestrooms at our hotel asset, the Sheridan Grand Sacramento, which led to a sharp year-over-year increase in our Q1 NOI. As further detailed by Steve, the planned renovations of the hotel's common areas have impacted our Q2 results and will impact our results for the balance of the year.

在我們的酒店領域，如您所知，我們最近完成了酒店資產 Sheridan Grand Sacramento 的所有 500 多間客房的翻新，這導致我們第一季的 NOI 同比大幅增長。正如史蒂夫進一步詳細說明的那樣，酒店公共區域的計劃翻新工程已經影響了我們第二季度的業績，並將影響我們今年剩餘時間的業績。

However, we believe these upgrades will position the asset well as we head into 2026 and beyond. Lastly, regarding asset loss. We continue to actively evaluate opportunities, and we'll provide updates as soon as we have material developments to share.

然而，我們相信，這些升級將使我們在進入 2026 年及以後的時期處於有利地位。最後，關於資產損失。我們將繼續積極評估機會，一旦有重大進展可以分享，我們將立即提供更新。

Turning to our second quarter results. Our core FFO was negative $7.2 million, and our overall net operating income decreased to $9.8 million from $11.8 million in the prior quarter. Our office NOI declined by $1.6 million from the prior quarter largely due to real estate tax benefits. We benefited from in Q1, the timing of tenant reimbursement revenue and long expect tenant vacancies at two of our properties in California. As noted earlier, leasing has picked up and new leasing activity is not yet captured in our net operating income.

談談我們的第二季業績。我們的核心 FFO 為負 720 萬美元，整體淨營業收入從上一季的 1,180 萬美元下降至 980 萬美元。我們的辦公室淨營業收入較上一季下降了 160 萬美元，這主要是由於房地產稅收優惠。我們在第一季受益於租戶補償收入的時機以及我們在加州的兩處房產的長期預期租戶空置率。如前所述，租賃業務已回暖，新的租賃活動尚未計入我們的淨營業收入。

Our hotel NOI was $4.2 million for the quarter compared to $4.7 million in Q1. First quarter is a seasonally strong period, and our planned renovation impacted books towards the end of the second quarter. Our multi-family NOI increased by approximately $800,000 from the prior quarter, primarily due to a decrease in the unrealized losses recognized at our unconsolidated multi-family entities and lower costs at our consolidated properties.

本季我們的酒店淨利潤為 420 萬美元，而第一季為 470 萬美元。第一季是季節性的強勁時期，我們計劃的翻新對第二季末的書籍產生了影響。我們的多戶型 NOI 較上一季增加了約 80 萬美元，主要原因是我們的非合併多戶型實體確認的未實現損失減少以及合併物業的成本降低。

Our lending NOI declined approximately $640,000 primarily due to higher reserves as well as lower revenue as a result of loan payoffs. Looking ahead, we believe there is a full opportunity to grow NOI in 2026. This has supported by several key drivers.

我們的貸款 NOI 下降了約 64 萬美元，主要原因是儲備金增加以及貸款償還導致收入減少。展望未來，我們相信 2026 年 NOI 將有充分的成長機會。這得到了幾個關鍵驅動因素的支持。

The continued improvement in office leasing activity the full completion of renovations at our hotel asset, steady gains in the multi-family performance through higher rental rates, improved occupancy and the delivery of new units as well as the potential benefit of a declining interest rate environment.

辦公室租賃活動的持續改善，酒店資產的全面裝修完成，透過提高租金、提高入住率和交付新單元，多戶型住宅的業績穩步增長，以及利率下降環境帶來的潛在好處。

With that, I will turn it over to Steve to provide more details on portfolio.

說完這些，我會把話題交給史蒂夫，讓他提供更多關於投資組合的細節。

Thanks, David. I would like to give a little more detail on our segments. Starting with multifamily, we continue to focus on growing our peer newer vintage multifamily portfolio. As David mentioned, we believe there's a significant opportunity to grow our multifamily net operating income through increasing rental rates and occupancy and lowering costs.

謝謝，大衛。我想更詳細地介紹一下我們的細分市場。從多戶型住宅開始，我們繼續專注於擴大同類較新的老式多戶型住宅組合。正如大衛所提到的，我們相信，透過提高租金和入住率並降低成本，我們的多戶住宅淨營業收入有很大的成長機會。

Starting in Los Angeles, we continue to make progress on our lease-up at 701 South, the residential component of our partial office residential conversion completed towards the end of last year. Multi-family occupancy at the property was approximately 68% at the end of this quarter, up from 40% at the end of the prior quarter. As a reminder, the top 2 floors of this property were converted into 68 high-end residential units, while the ground floor creative office known as 47 Wilshire remains 100% leased.

從洛杉磯開始，我們繼續推進 701 South 的租賃工作，這是我們部分辦公室住宅改建的住宅部分，於去年年底完成。本季末，該物業的多戶住宅入住率約為 68%，高於上一季末的 40%。需要提醒的是，該物業的頂部兩層被改建為 68 個高端住宅單元，而被稱為 47 Wilshire 的底層創意辦公室仍然 100% 出租。

As mentioned on our previous calls, we believe there's an opportunity to develop additional units on the back surface lot of the property given recent zoning changes. We will provide additional details in the future as we progress through the pre-development phase.

正如我們之前的電話會議中提到的那樣，鑑於最近的分區變化，我們相信有機會在該物業的後方地段開發更多單位。隨著預開發階段的進展，我們將在未來提供更多細節。

In Los Angeles, we have 1 development underway at 1915 Park, which is a 36 ground-up 36-unit ground-up multi-family development. We like to begin lease-up of this asset in the third quarter. This development is a joint venture with an international pension fund and is being built on land adjacent to our office building at 1910 West Sunset and EchoPark, a highly desirable walkable submarket with attractive dining and entertainment options.

在洛杉磯，我們正在 1915 Park 進行 1 個開發項目，這是一個 36 棟 36 單元的多戶型開發項目。我們希望在第三季開始租賃該資產。該開發案是與一家國際退休基金合資開發的，建設地點位於我們位於西日落街 1910 號和 EchoPark 的辦公大樓附近的土地上，這是一個非常理想的步行子市場，擁有誘人的餐飲和娛樂選擇。

In Oakland, we saw a slight pickup in total occupancy in the quarter. The market is still challenging, but we believe our properties will benefit near term from lower operating costs and ultimately benefit from a lack of new construction in the Oakland residential market as well as an overall recovery in the Bay Area that is already underway.

在奧克蘭，我們看到本季的總入住率略有回升。市場仍然充滿挑戰，但我們相信，我們的房產將在短期內受益於較低的營運成本，並最終受益於奧克蘭住宅市場缺乏新建築以及灣區已經開始的整體復甦。

Turning to the office segment. Last quarter, we highlighted that we had a very active pipeline, and that has translated into very strong leasing activity. We are specifically seeing strong demand at our Austin and L.A. assets. We executed approximately 48,000 square feet of leases in the quarter and approximately 78,000 square feet on a year-to-date basis.

轉向辦公室部分。上個季度，我們強調我們擁有非常活躍的管道，這轉化為非常強勁的租賃活動。我們特別看到奧斯汀和洛杉磯資產的需求強勁。我們在本季度簽訂了約 48,000 平方英尺的租賃合同，年初至今簽訂了約 78,000 平方英尺的租賃合約。

This is in addition to the 176,000 square feet of leases in the fourth quarter of 2024. Largest was our nearly 11-year lease with Boston Scientific for approximately 31,000 square feet at our Penn field creative office property. Our office lease percentage was approximately [70%] at the end of the second quarter. And when including our office building Oakland, our lease percentage was approximately 80%.

這是在 2024 年第四季 176,000 平方英尺租賃面積的基礎上新增的。最大的一筆是我們與波士頓科學公司簽訂的近 11 年租約，租用賓州球場創意辦公大樓約 31,000 平方英尺的空間。截至第二季末，我們的辦公室租賃比例約為[70%]。如果算上奧克蘭的辦公大樓，我們的租賃比例約為 80%。

Turning to our hotel. As David mentioned, we recently completed the renovation of all 500-plus rooms at our hotel asset in Sacramento. We were very pleased to see net operating income grew 15% year-over-year in the first quarter.

轉向我們的酒店。正如大衛所提到的，我們最近完成了位於薩克拉門託的酒店所有 500 多間客房的翻新。我們非常高興地看到第一季淨營業收入年增15%。

We are now seeing with an approximately $11 million renovation of the common area space, which primarily includes upgrades to the ballroom, banquet space, public space and food and beverage areas. The renovation is being funded by $8 million of key money we received as part of the extension of our management agreement with Marriott, cash flow from the property and future funding on the mortgage. We believe the asset will be very well positioned as we head into 2026.

我們現在看到公共區域空間的翻新工程耗資約 1100 萬美元，主要包括宴會廳、宴會空間、公共空間和餐飲區域的升級。此次翻修的資金來自我們與萬豪續簽管理協議時收到的 800 萬美元禮金、該物業的現金流量以及未來的抵押貸款資金。我們相信，進入 2026 年，該資產將處於非常有利的地位。

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

說完這些，我就把電話轉給巴里。

Good morning. I'm going to spend a few minutes going over the comparative financial highlights for the second quarter of 2025 versus the second quarter of 2024. Starting with our segment NOI, which was $9.8 in the second quarter of 2025 and compared to $16.2 million in the prior year comparable period. Broken down by segment, the decrease of $6.4 million was driven by decreases of $3.4 million in NOI from our office properties, $2.1 million from our multifamily properties, $162,000 from our hotel property and $790,000 from our lending business.

早安.我將花幾分鐘時間回顧 2025 年第二季與 2024 年第二季的財務亮點比較。從我們的分部淨營業利潤 (NOI) 開始，2025 年第二季的淨營業利潤為 980 萬美元，而去年同期的淨營業利潤為 1,620 萬美元。按部門細分，減少 640 萬美元是由於我們的辦公物業的 NOI 減少 340 萬美元、我們的多戶住宅物業的 NOI 減少 210 萬美元、我們的酒店物業的 NOI 減少 162,000 美元以及我們的貸款業務的 NOI 減少 790,000 美元。

Our office segment NOI for Q2 2025 was $5.5 million versus $8.9 million during Q2 2024. The decrease was primarily driven by a decrease in rental revenue at our office property in Oakland, California, attributable to a decrease in occupancy as well as by a decrease in income from our unconsolidated office entities due to a decrease in the unrealized gain recognized on their investments in real estate.

我們 2025 年第二季的辦公部門淨營業利潤為 550 萬美元，而 2024 年第二季為 890 萬美元。下降的主要原因是，由於入住率下降導致我們位於加州奧克蘭的辦公物業租金收入減少，以及由於我們在房地產投資中確認的未實現收益減少導致我們非合併辦公實體的收入減少。

Our multifamily segment NOI was $189,000 during Q2 2025 compared to income of $2.3 million from the prior year comparable period. The decrease was driven by an unrealized loss on investment in real estate and one of our unconsolidated joint ventures during the second quarter of 2025 as well as a decrease in revenues at our multi-family properties in Oakland, California as a result of the decline in occupancy and monthly rent per occupied unit net of rent concessions compared to the prior year comparable period.

2025 年第二季度，我們的多戶型住宅部門的 NOI 為 189,000 美元，而去年同期的收入為 230 萬美元。下降的原因是 2025 年第二季度房地產投資和我們一家非合併合資企業的未實現損失，以及由於入住率和扣除租金優惠後每戶月租金與去年同期相比有所下降，導致我們位於加利福尼亞州奧克蘭的多戶型物業的收入減少。

Our hotel segment NOI for Q2 2025 was $4.2 million compared to $4.3 million in prior year comparable period. The decrease was driven by a decrease in food and beverage sales revenues. Our lending division NOI decreased to a loss of $47,000 compared to NOI of $743,000 and in the prior year comparable period, primarily due to a decrease in interest income as a result of loan payoffs and lower interest rates as well as an increase in current expected credit losses recognized during the second quarter of 2025.

我們飯店部門 2025 年第二季的淨營業利潤為 420 萬美元，而去年同期為 430 萬美元。下降的原因是食品和飲料銷售收入的下降。我們的貸款部門的 NOI 減少至 47,000 美元的虧損，而去年同期的 NOI 為 743,000 美元，這主要是由於貸款償還和利率降低導致利息收入減少，以及 2025 年第二季度確認的當前預期信用損失增加。

Below the segment NOI line, we had an increase of interest expense of $1.3 million, which was driven by a higher aggregate debt balance as well as an increase in transaction-related costs of $668,000. Our FFO was negative $7.9 million or negative $10.42 per diluted share to negative $3.3 million with a $33.46 per diluted share in the prior year comparable period.

在分部淨營業收入線以下，我們的利息支出增加了 130 萬美元，這是由於總債務餘額增加以及交易相關成本增加 668,000 美元所致。我們的 FFO 為負 790 萬美元，即每股攤薄收益為負 10.42 美元，至負 330 萬美元，而去年同期每股攤薄收益為 33.46 美元。

And our core FFO was negative $7.2 million or negative $9.53 per diluted share compared to negative $2.1 million or negative $21.93 per diluted share in the prior year comparable period. The per share financial information is presented after giving effect to the shareholder approval for [25] reverse stock split that was completed on April 15 this year.

我們的核心 FFO 為負 720 萬美元，即每股攤薄收益負 9.53 美元，而去年同期的核心 FFO 為負 210 萬美元，即每股攤薄收益負 21.93 美元。每股財務資訊是在考慮今年 4 月 15 日完成的 [25] 反向股票分割的股東批准後呈現的。

The decrease in our FFO and our core FFO was primarily driven by the previously discussed decrease in total segment NOI and as well as the increase in interest expense, partly offset by a decrease in preferred dividends of $2.6 million. Our FFO was further reduced by our transaction costs of approximately $700,000. Core FFO differences relate to excluded reconciliation items added back for core FFO releted to transaction-related costs, preferred stock redemption costs and deem bends.

我們的 FFO 和核心 FFO 的減少主要是由於先前討論過的總分部 NOI 的減少以及利息支出的增加，部分被優先股股息減少 260 萬美元所抵消。我們的交易成本進一步減少了約 70 萬美元，導致 FFO 進一步減少。核心 FFO 差異與核心 FFO 中加回的與交易相關成本、優先股贖回成本和視同彎曲相關的排除調節項目有關。

Other items to note for the quarter include completion of a refinancing of our office property in Austin, Texas in early April. We hit portion of the proceeds to fully pay off and if our credit facility, which is now retired. And we closed on a warehouse credit facility secured by SBA 7A loans receivable with maximum borrowing capacity of up to $20 million and $8.25 million outstanding on that facility at June 30. We also have now extended the debt maturities multifamily assets in Oakland.

本季值得注意的其他事項包括 4 月初完成位於德州奧斯汀的辦公大樓的再融資。我們用部分收益來完全償還我們的信貸額度，該額度現已退還。我們還達成了一項由 SBA 7A 應收貸款擔保的倉庫信貸協議，最高借款額度為 2000 萬美元，截至 6 月 30 日，該協議的未償還金額為 825 萬美元。我們現在也延長了奧克蘭多戶型資產的債務期限。

With that, we can open the line for questions.

這樣，我們就可以開始回答問題了。

(Operator Instructions). I'm seeing no questions.

（操作員指令）。我沒有看到任何問題。

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

問答環節和今天的電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。