Creative Media & Community Trust Corporation (NASDAQ:CMCT) Q2 2024 Results Earnings Conference Call August 8, 2024 12:00 PM ET

Company Participants

Steve Altebrando - Portfolio Oversight
David Thompson - Chief Executive Officer
Barry Berlin - Chief Financial Officer

Conference Call Participants

John Massocca - B. Riley Securities

Operator

Good day, and welcome to the Creative Media and Community Trust Corporation Second Quarter 2024 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

I would like to turn the conference over to Steve Altebrando, Portfolio Oversight. Please go ahead.

Steve Altebrando

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. 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 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.

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

David Thompson

Thanks, Steve. And thank you, everyone, for joining our call today. This morning, we released our second quarter 2024 results. Net operating income improved from the first quarter across all our real estate operating segments – office, multifamily, and hotel.

While we are pleased with this improvement from last quarter, our cash flow continues to be impacted by elevated short-term interest rates, the widely known challenges in the office market, and continued soft rental rates at our Bay Area multifamily assets.

We are focused on strengthening our balance sheet and improving our cash flow. As such, we continue to evaluate asset sales and other ways to reduce both our recourse debt and overall debt.