Creative Media & Community Trust Corporation (NASDAQ:CMCT) Q3 2023 Earnings Call Transcript November 16, 2023
Operator: Hello, and welcome to the Creative Media & Community Trust Third Quarter 2023 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the call over to Steve Altebrando. Please go ahead.
Stephen 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 the non-GAAP financial measures discussed during today’s call. During the course of 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.
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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 maybe 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. Starting off with some highlights of our third quarter, we continue to execute on our strategy to grow the multifamily portion of our portfolio. Our development pipeline made additional progress. Our office lease percentage remained stable. We saw a continued strength at our hotel asset and our liquidity remains strong. First, I’d like to touch on our progress in multifamily. At the end of the third quarter, our overall multifamily occupancy improved to 84.1%, up 20 basis points from the prior quarter. As we’ve discussed before, we’ve been focused on growing the multifamily side of our portfolio to achieve more balance between creative office and multifamily assets.
We had 696 units to our portfolio earlier this year from the acquisition of two multifamily assets in Oakland and one multifamily property in Los Angeles. Two of those three assets are still in lease-up and the third asset has significant NOI growth opportunity as the in-place rents are substantially below today’s market. We believe the continued lease-up of these assets will continue to improve our funds from operations. Turning to our development pipeline. During the quarter, we made significant progress, most notably in Culver City, where we recently received entitlement to redevelop our office building on Washington Boulevard. I’ll provide more details on this exciting update in a moment. In our Office Segment, our lease percentage remained stable in the third quarter at 84.3%.
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