Company: CMCT
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000908311-25-000038
Chunk: 100

Company: Creative Media & Community Trust Corp
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 100
---
 31, 2025 to the Three Months Ended March 31, 2024 

Net Loss and FFO

 Three Months Ended March 31,Change 20252024$% (dollars in thousands)Total revenues$32,295 $33,998 $(1,703)(5.0)%Total expenses$37,295 $37,307 $(12)— %Net loss$(6,272)$(3,905)$(2,367)60.6 %

Net loss was $6.3 million for the three months ended March 31, 2025, compared to a net loss of $3.9 million for the three months ended March 31, 2024, an increase of $2.4 million. The increase in net loss was primarily due to a decrease of $1.9 million in segment net operating income (discussed in more detail in the following Summary Segment Results) and an increase in interest expense of $1.1 million, partially offset by a decrease in transaction-related costs of $664,000. 

Funds from Operations

We believe that funds from operations (“FFO”), a non-GAAP measure, is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO represents net income (loss) attributable to common stockholders, computed in accordance with GAAP, which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gains (or losses) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (the “NAREIT”).

Like any metric, FFO should not be used as the only measure of our performance because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO in accordance with the standards established by the NAREIT; accordingly, our FFO may not be comparable to the FFOs of other REITs. Therefore, FFO should be considered only