CMCT Q3 2025 Earnings Call Transcript

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Friday, Nov. 14, 2025 astatine 12 p.m. ET

• Chief Executive Officer — David A. Thompson

• Chief Financial Officer — Barry Neil Berlin

• Executive Vice President — Steve Altebrando

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David A. Thompson: Thanks, Steve, and convey you to everyone for joining our telephone today. I'll statesman with an update connected the advancement we're making with our strategical initiatives and past reappraisal our results for the quarter. As a reminder, our cardinal priorities stay focused connected 2 main goals: strengthening our liquidity and our equilibrium expanse and increasing our multifamily business. To beforehand these objectives, which we archetypal outlined past September, we've been executing a important refinancing programme and evaluating selective plus sales. Earlier this week, we announced that we person entered into a definitive statement to merchantability our lending business.

This concern is chiefly focused connected originating SBA 7 loans for constricted work hotels and it was considered a non-core plus for the company. As of September 30, the acquisition terms was estimated to beryllium astir $44 cardinal and output the institution astir $31 cardinal aft repayment of indebtedness transaction and different expenses. The transaction remains taxable to Small Business Administration support arsenic good arsenic definite closing conditions. At the aforesaid time, we proceed to marque meaningful advancement connected our refinancing initiatives. Since past September, we completed financings connected 7 assets and enactment successful spot a warehouse installation for our lending division. This installation volition beryllium retired astatine the adjacent of our merchantability transaction.

We are besides moving connected an upsize of our owe up connected Penfield, our originative bureau plus successful Austin. After closing this financing earlier this year, we signed a lease with an investment-grade tenant, which should let america to upsize the loan. We're present finalizing the indebtedness documents with the lender. Taken together, these actions were important steps for the company. They provided proceeds that allowed america to importantly trim our recourse debt, including the afloat status of our $169 cardinal recourse recognition installation earlier this year. They besides supported our maturation initiatives, including lease-up enactment astatine our Beverly Hills, Culver City, Brentwood, San Francisco, and Austin properties.

We completed renovations astatine our edifice plus and caller indebtedness originations successful our lending concern enabled america to proceed paying preferred dividends. Overall, we're encouraged by the advancement we've made successful improving liquidity. We are moving to presumption the institution to payment from a recovering commercialized existent property market, which is supported by little involvement rates, a important uptick successful bureau leasing activity, and improving economical conditions successful the San Francisco Bay Area. Turning to third-quarter results, our halfway FFO was antagonistic $10.5 million, reflecting respective items that impacted show during the quarter. Our wide nett operating income was $7 cardinal compared to $9.8 cardinal successful the anterior quarter.