CMCT(CMCT) - 2024 Q2 - Quarterly Report

Real Estate Portfolio - As of June 30, 2024, the real estate portfolio consisted of 27 assets, with 82.5% occupancy in office properties totaling approximately 1.3 million rentable square feet[200]. - The three multifamily properties achieved a 92.5% occupancy rate as of June 30, 2024[200]. - Occupancy rate for the multifamily portfolio as of June 30, 2024, was 92.5%, up from 83.9% in June 2023[213]. - The hotel occupancy rate in Sacramento, California, was 79.5% for the six months ended June 30, 2024, slightly down from 80.9% in the same period of 2023[214]. Revenue and Financial Performance - Total revenues for the three months ended June 30, 2024, were $34.4 million, a 5.1$32.8 million in the same period of 2023[221]. - Total revenues for the six months ended June 30, 2024, were $68.4 million, an increase of 11.0$61.7 million for the same period in 2023[240]. - Multifamily revenue rose significantly by 33.6% to $5.4 million for the three months ended June 30, 2024, compared to$4.1 million in the prior year, attributed to increased occupancy and rent[232]. - Hotel revenue increased to $12.2 million for the three months ended June 30, 2024, up 4.2$11.7 million for the same period in 2023, driven by higher average daily rates[231]. - Office revenue for the three months ended June 30, 2024, was $14.1 million, a slight increase of 0.9$13.975 million in the same period of 2023[231]. - Net loss for the three months ended June 30, 2024, was $852,000, significantly reduced from a net loss of$18.4 million in the same period of 2023, marking a decrease of $17.5 million[222]. - Net loss for the six months ended June 30, 2024, was$4.8 million, a significant improvement of 81.7% compared to a net loss of $25.9 million for the same period in 2023[240]. Expenses and Cost Management - Total expenses decreased by 27.8$36.1 million for the three months ended June 30, 2024, compared to $50.1 million in the prior year[221]. - Total expenses for the six months ended June 30, 2024, decreased by 16.7$73.4 million from $88.2 million in the prior year[240]. - Depreciation and amortization expense decreased to$6.5 million for the three months ended June 30, 2024, from $20.5 million in the prior year, primarily due to amortization of acquired lease intangible assets[239]. - Depreciation and amortization expense decreased by 56.8$12.9 million for the six months ended June 30, 2024, compared to $30.0 million for the same period in 2023[257]. Asset Management and Strategy - The company plans to dispose of assets that do not fit its strategy over time, evaluating each asset regularly for potential better returns[203]. - The company aims to leverage investor relationships to execute its investment pipeline using an asset-light approach, reducing capital outlay and risk[202]. - CIM Group targets acquisitions in "Qualified Communities" characterized by high barriers to entry and positive population trends, enhancing asset value[204]. Financing and Debt - The company intends to finance future activities through various methods, including equity offerings, credit facilities, and cash flows from operations[207]. - The 2022 Credit Facility includes a$56.2 million term loan and a revolver allowing the Company to borrow up to $150.0 million, maturing in December 2025[264]. - As of June 30, 2024, outstanding commitments to fund loans were$19.6 million, with government guarantees of 75%[265]. - The Company has mortgage loan agreements with outstanding balances of $250.7 million as of June 30, 2024[270]. - As of June 30, 2024, 51.3$250.7 million[286]. Investment and Capital Structure - The company issued 4,603,287 Series A Preferred Stock and Series A Preferred Warrants, receiving aggregate net proceeds of $105.2 million[278]. - The company issued 11,492,002 shares of Series A1 Preferred Stock, 8,251,657 shares of Series A Preferred Stock, and 56,857 shares of Series D Preferred Stock, raising aggregate net proceeds of$446.9 million[280]. - Holders of Series A1 Preferred Stock are entitled to cumulative cash dividends at an annual rate of 6.0%, equivalent to $0.3750 per share per quarter[281]. - As of June 30, 2024, there were 988,794 Series A Preferred Warrants outstanding, allowing the purchase of 250,777 shares of Common Stock[279]. Operational Metrics - The hotel property had a RevPAR of$167.57 for the six months ended June 30, 2024[200]. - Average Daily Rate (ADR) for the hotel was $210.80 for the six months ended June 30, 2024, compared to$201.59 in the prior year[214]. - Monthly rent per occupied unit for the multifamily portfolio was $2,647 as of June 30, 2024, compared to$2,914 in June 2023[213]. - Interest expense increased to $8.3 million for the three months ended June 30, 2024, compared to$7.4 million in the same period of 2023, due to higher outstanding principal balances[237]. - Lending revenue decreased by 13.5% to $2.6 million for the three months ended June 30, 2024, down from$3.0 million in the same period of 2023, due to lower loan sale volume[232].