Creative Media & Community Trust Corporation

For Q2 2026, segment NOI was $9.3 million versus $9.8 million a year ago. Loss from unconsolidated entities was $3.2 million versus $437,000, driven mainly by fair value adjustments at unconsolidated office and multifamily entities. Excluding loss from unconsolidated entities, segment NOI was $12.5 million versus $10.3 million. FFO was negative $3.5 million, or negative $1.28 per diluted share, versus negative $7.9 million, or negative $981.63 per diluted share, and Core FFO was negative $3.4 million, or negative $1.25 per diluted share, versus negative $7 million, or negative $870.25 per diluted share. Multfamily NOI rose to $638,000 from $189,000, hotel NOI rose to $4.6 million from $4.2 million, and office NOI fell to $4 million from $5.5 million. Looking ahead, management did not provide formal quarterly or full-year numerical guidance, but said it expects improving fundamentals in Bay Area multifamily, continued leasing progress in office, and additional NOI growth at the hotel after renovations.

David Thompson framed the quarter around three priorities: improving FFO in 2026 and 2027, strengthening the balance sheet while funding key growth projects, and evaluating potential asset sales. He emphasized that operating trends are strengthening across multifamily, office, and the Sacramento hotel, and said those improvements are translating into better operating results. His tone was constructive and focused on portfolio recovery and monetizing intrinsic value gaps.

Brandon Hill focused on the bridge from segment performance to bottom-line results. He cited segment NOI of $9.3 million, loss from unconsolidated entities of $3.2 million, and explained that the decline was largely due to fair value adjustments at unconsolidated office and multifamily entities. He also highlighted higher depreciation and amortization, a $455,000 casualty loss from water damage at the hotel, and a $786,000 decline in transaction costs; he said the big FFO/Core FFO improvement versus last year was mainly from $4.3 million less in redeemable preferred stock dividends and lower transaction-related costs.

There was no analyst Q&A on the call, so no management follow-up on external concerns or additional color was provided. The closest thing to Q&A-style clarification was management’s commentary on refinancing and asset resolution: 1150 Clay’s mortgage was extended to mid-2027, the Sheraton Grand refinance is being pursued with the renovated hotel expected to support a larger loan and lower spread, and the Oakland office asset’s nonrecourse mortgage matured in early July with management choosing not to add capital and instead continue discussions with the servicer.