Creative Media & Community Trust Corporation (CMCT): Business Model Canvas [Dec-2025 Updated]

You're looking at a Real Estate Investment Trust (REIT) making a tough but necessary pivot, selling off its lending arm to focus squarely on multifamily real estate, and honestly, that's where the real story is for Creative Media & Community Trust Corporation (CMCT). As someone who's spent two decades mapping these shifts, I see this move as a clear play for stability, especially after realizing about $31M in net cash proceeds from that sale to strengthen their balance sheet and reduce debt. Their new core is premier Class A multifamily units in high-barrier markets, supported by a portfolio of 27 assets and $115.68 million in trailing 12-month revenue as of September 30, 2025. Dive into the full Business Model Canvas below to see exactly how their Key Activities and Revenue Streams are being rewired for a more resilient, rent-focused future.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Creative Media & Community Trust Corporation (CMCT) reflects its reliance on established real estate operators, capital partners for development, and strategic divestiture counterparties to execute its strategy of focusing on premier multifamily assets.

CMCT is explicitly operated by affiliates of CIM Group, L.P., which provides the vertically-integrated operator and manager expertise across research, acquisition, development, finance, leasing, and onsite property management capabilities. This operational relationship is fundamental to CMCT's execution in its core creative office and multifamily sectors.

Development projects often involve external capital, such as the joint venture with an international pension fund. This partnership was instrumental in the recent completion of the 1915 Park Ave asset in Los Angeles, a modern apartment community.

The strategic realignment announced in late 2025 heavily involved a key partnership for asset divestiture. Creative Media & Community Trust Corporation entered into a definitive agreement to sell its lending division to PG FR Holding, LLC, an affiliate of Peachtree Group.

This transaction is a cornerstone of CMCT's plan to strengthen its balance sheet and improve liquidity, following the Q3 2024 announcement of these priorities. The deal also triggered management changes, with Barry Berlin resigning as Executive Vice President, Chief Financial Officer, Treasurer, and Secretary upon closing, succeeded by Brandon Hill as CFO and Treasurer.

The operational partnership with Marriott remains in place for the Sheraton Grand Sacramento hotel asset, which contains 505 guest rooms. CMCT executed a long-term extension of the management agreement with Marriott, which is intended to help fund planned 2025 improvements to the hotel's ballroom, meeting space, and food and beverage outlets. This hotel asset was financed in late 2024 with a secured, non-recourse loan of up to $92.2 million.

Here's a quick look at the financial impact and scale related to these key relationships as of late 2025:

The operational structure relies on these external and internal alignments:

• CIM Group affiliates: Provides the core operational and management expertise for CMCT's portfolio.
• International pension fund: Capital partner for the 1915 Park Ave development in Los Angeles.
• PG FR Holding, LLC (Peachtree Group affiliate): Buyer of the lending division in a transaction valued at approximately $44 million.
• Marriott International: Manager of the 505-room Sheraton Grand Sacramento hotel asset.

Furthermore, the lending division sale agreement, which is expected to yield $31 million in net cash, is a deliberate action to enhance liquidity and focus on the core multifamily portfolio, which as of Q3 2025 included 696 units across four properties.

The operational relationship with CIM Group is central, as the expertise of CIM is applied to the acquisition, development, and operation of CMCT's premier multifamily properties. This structure allows CMCT to pursue its strategy while offloading non-core assets like the lending platform.

Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Key Activities

You're looking at the core engine of Creative Media & Community Trust Corporation (CMCT) as of late 2025, which is heavily focused on portfolio optimization and balance sheet strengthening.

The activity of acquiring and developing premier multifamily properties remains central to the strategy, pivoting away from non-core segments. This focus is meant to diversify revenue streams and achieve better balance within the portfolio.

• Acquire and develop premier multifamily assets in vibrant communities.
• Portfolio included four multifamily properties totaling 696 units as of September 30, 2025.
• Development pipeline included 1915 Park Avenue, targeted for mid-2025 delivery.

Leasing and operating the creative office space is a major ongoing activity, even as the company evaluates asset sales. You need to track the occupancy here closely, as it directly impacts segment performance.

The office portfolio is substantial, but the lease percentage shows room for improvement, though leasing velocity is picking up. Here's a quick look at the office segment metrics as of the third quarter of 2025:

Executing strategic asset sales is a critical, near-term activity designed to improve liquidity and strengthen the balance sheet. This is a clear signal of portfolio refinement.

• Entered agreement to sell the lending business for approximately $44 million on November 6, 2025.
• The company continues to evaluate additional asset sales.

Managing debt through refinancing and maturity extensions is directly supporting the balance sheet goals. You saw this play out with the Oakland loan.

The company completed four refinancings across seven assets. Specifically, they refinanced an $81.0 million mortgage loan at a multifamily property in Oakland, CA, extending the maturity date to January 2027. This specific extension followed a $6.0 million repayment on that mortgage, reducing it from $87.0 million.

Finally, renovating and managing the single hotel asset is an activity aimed at future NOI improvement, though current results were impacted by the work in progress. The hotel has 505 rooms. All 505 rooms were renovated, and the public space upgrades were nearing completion as of late 2025. The hotel segment reported an NOI of $850,000 for the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Key Resources

You're looking at the core assets Creative Media & Community Trust Corporation (CMCT) uses to run its business as of late 2025. These aren't just abstract concepts; they are hard numbers and established capabilities.

The foundation of the business is its physical holdings. As of June 30, 2025, the real estate portfolio held 27 assets in total. This portfolio is strategically segmented across different commercial property types, which you can see broken down here:

The operational engine relies heavily on external expertise. Creative Media & Community Trust Corporation seeks to apply the expertise of CIM Group to the acquisition, development and operation of premier multifamily properties and creative office assets. This in-house capability covers acquisition, development, and leasing functions.

Liquidity is being actively managed through divestiture. The company entered into an agreement to sell its lending division, which is expected to yield net cash proceeds of about $31M. This move is specifically designed to improve liquidity and strengthen the balance sheet.

For immediate financial flexibility, the company has access to committed credit. As of June 30, 2025, Creative Media & Community Trust Corporation had access to a $20.0 million revolving credit facility, secured by the unguaranteed portion of the subsidiary's SBA 7(a) loans receivable and other assets. The outstanding balance on this Lending Division Revolving Credit Facility was $8.3 million on that same date.

Here are the key financial resource facts:

• Expected net cash proceeds from lending division sale: $31M.
• Size of the new Lending Division Revolving Credit Facility (closed June 2025): $20.0 million.
• Outstanding balance on the new credit facility as of June 30, 2025: $8.3 million.
• Total assets in the real estate portfolio as of September 30, 2025: 27.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Value Propositions

You're looking at Creative Media & Community Trust Corporation (CMCT)'s value proposition as of late 2025. The core strategy is clearly pivoting toward stability, using asset sales to fund a focus on multifamily assets. Honestly, the numbers show a company actively managing transitions, which is key to understanding its current offering.

Premier Class A Multifamily Properties in High-Growth, High-Barrier-to-Entry Markets

The commitment to premier multifamily is backed by specific asset metrics, even with recent occupancy softness. As of September 30, 2025, the portfolio holds four multifamily properties totaling 696 units. The segment's Net Operating Income (NOI) saw a sequential lift, reaching $792,000 for the third quarter of 2025, up from $508,000 in the third quarter of 2024. This NOI growth was primarily driven by a decrease in real estate taxes at the Oakland, California multifamily properties. However, the value proposition is being tested by current occupancy; the segment was 85.3% occupied as of September 30, 2025, down from 92.0% the prior year. Furthermore, management is actively managing debt on these assets, having recently refinanced an $81.0 million mortgage loan at one Oakland multifamily property, extending its maturity to January 2027. A concrete example of portfolio enhancement is the completion of a modern 36-unit apartment building in Echo Park, Los Angeles.

Creative Office Space Tailored for Technology, Media, and Entertainment Tenants

For the office segment, the value is in the leasing velocity and the quality of the remaining space, especially outside of the challenged Oakland asset. The total office portfolio, which spans approximately 1.3 million rentable square feet across 12 properties, stood at 73.6% leased at the end of Q3 2025. If you exclude the one Oakland office asset, the leased percentage improves to 86.6%, up from 81.7% at the end of 2024. Leasing activity shows momentum; the company executed 80,962 square feet of leases with terms longer than 12 months in the third quarter alone. Over the first nine months of 2025, total executed leases exceeded 159,000 square feet. The annualized rent per occupied square foot was $60.22 as of September 30, 2025.

Strategic Repositioning Toward the More Stable Multifamily Sector

The most significant action defining this value proposition is the divestiture of non-core assets to increase focus and liquidity. Creative Media & Community Trust Corporation entered into a definitive agreement to sell its entire lending business for a price of approximately $44 million. This is a clear move to strengthen the balance sheet and fund the pivot to multifamily. The company has also been busy with debt management, having fully repaid and retired its $169 million recourse corporate-level credit facility earlier in 2025. This strategic realignment is intended to position the company for growth in the more stable multifamily sector, as management stated they are accelerating their focus there.

High-Quality, Renovated Hotel Experience in Northern California

The hotel asset, a single, 505-room property, is being repositioned through significant capital investment. Management completed an $11 million renovation of the Sheraton Grand Sacramento hotel, including all 505 rooms. This renovation is showing up in key performance indicators, even though Q3 2025 NOI was impacted by ongoing public space upgrades. Occupancy rose to 68.9% in Q3 2025, up from 55.5% the prior year. The Average Daily Rate (ADR) climbed to $194.47, resulting in a RevPAR (Revenue Per Available Room) of $133.92 for the quarter.

Here's a quick snapshot of the core real estate portfolio metrics as of September 30, 2025, compared to the prior year:

The overall portfolio's total segment NOI for Q3 2025 was $7.0 million, down from $7.6 million in Q3 2024.

You should track the leasing execution closely; the company signed 30,333 square feet of long-term leases in Q1 2025 alone.

The company reported a net loss attributable to common stockholders of $(17.7) million for the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Customer Relationships

You're looking at how Creative Media & Community Trust Corporation (CMCT) manages its relationships with tenants and investors as of late 2025. This is heavily influenced by their operational structure, which relies on the in-house expertise of affiliates of CIM Group, L.P., for functions like leasing and onsite property management. So, the relationship is deeply integrated with their key resources.

Dedicated onsite property management for both office and multifamily assets.

CMCT operates a portfolio that requires dedicated management across different asset types. As of the third quarter of 2025, the real estate portfolio included:

• 12 office properties, totaling approximately 1.3 million rentable square feet.
• Four multifamily properties, totaling 696 units.
• One 505-room hotel with an ancillary parking garage.

The company completed the delivery of a fifth multifamily asset, 1915 Park, a 36-unit building in Los Angeles, in Q3 2025. Affiliates of CIM Group, L.P. provide in-house capabilities for this management.

Direct leasing and negotiation of long-term leases with corporate tenants.

Leasing activity shows direct engagement with corporate customers. For the three months ended September 30, 2025, Creative Media & Community Trust Corporation executed 80,962 square feet of leases with terms longer than 12 months. This is a strong indicator of direct negotiation success. To give you some context on leasing momentum, year-to-date 2025, CMCT had executed approximately 140,000 square feet of office leases with 31 tenants. One specific example of a long-term commitment was the signing of an eleven-year lease at the Penn Field creative office campus.

Here's a quick look at the leasing status as of the latest report:

The annualized rent per occupied square foot for the office portfolio stood at $60.22 as of September 30, 2025.

Standardized tenant/resident services for Class A properties.

Service quality is implied through performance metrics in their Class A office and premier multifamily segments. For the office portfolio, the annualized rent per occupied square foot was $60.22 at September 30, 2025. In the hotel segment, after completing the renovation of all 505 rooms, the Revenue Per Available Room (RevPAR) for the six months ended June 30, 2025, was $171.63. For multifamily, lease-up progress at the 701 South Hudson property showed occupancy increasing from 22% at year-end 2024 to approximately 41% by the end of Q1 2025.

Investor relations via quarterly earnings reports and calls.

Investor communication is formalized through regular reporting. Creative Media & Community Trust Corporation reported its third quarter 2025 results on November 14, 2025. The call was hosted by CEO David Thompson, CFO Barry Berlin, and Portfolio Oversight Steve Altebrando. The relationship is one of transparency regarding financial challenges and strategic pivots. The Q3 2025 net loss attributable to common stockholders was $(17.7) million, which is a significant improvement from the $(34.8) million loss in Q3 2024.

Key non-GAAP metrics reported for Q3 2025 include:

• Funds from operations attributable to common stockholders (FFO): $(11.1) million.
• Core FFO attributable to common stockholders: $(10.5) million.

A major relationship update for investors was the announcement on November 6, 2025, of an agreement to sell the lending business for approximately $44 million, aligning with the focus on premier multifamily assets. Also, the company completed four refinancings across seven assets, including refinancing an $81.0 million mortgage loan at a multifamily property in Oakland, CA.

Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Channels

You're looking at how Creative Media & Community Trust Corporation (CMCT) gets its value proposition to its customers and how it raises the necessary capital to operate its portfolio as of late 2025. This involves a mix of direct management, third-party expertise, and public market access.

Direct In-House Leasing Teams for Office and Multifamily Properties

CMCT uses its direct in-house teams to manage the leasing of its office and multifamily assets. This channel is key for driving occupancy and maximizing rental revenue per square foot or unit. As of September 30, 2025, the office portfolio consisted of 12 properties, totaling approximately 1.3 million rentable square feet.

Leasing activity shows momentum through the direct channel. For the three months ended September 30, 2025, the team executed 80,962 square feet of leases with terms longer than 12 months. Looking at the first nine months of 2025, CMCT executed approximately 159,000 square feet of leases, which is a 69% increase from the prior year period. The office leased percentage stood at 73.6% on September 30, 2025. The annualized rent per occupied square foot for the office segment was $60.22 at that date. The multifamily segment, which includes 4 properties totaling 696 units, is also managed through this direct channel, with management expecting improved Net Operating Income (NOI) as occupancy recovers.

Here's a snapshot of the direct leasing performance as of the third quarter of 2025:

Third-Party Hotel Management for the Hospitality Asset

Creative Media & Community Trust Corporation utilizes a third-party structure for its single hospitality asset. This asset is one 505-room hotel with an ancillary parking garage. The company completed renovations on all 505 rooms earlier in 2025. For the three months ended September 30, 2025, the hotel segment's NOI was not explicitly broken out in the same way as Q1, but the overall segment NOI for Q2 2025 was $4.2 million. In Q2 2025, the hotel segment reported 78.4% occupancy with a Revenue Per Available Room (RevPAR) of $166.83.

Real Estate Brokers and Investment Banks for Asset Sales and Acquisitions

Brokers and investment banks are used for strategic portfolio adjustments, which is a key part of CMCT's stated plan to focus on premier multifamily assets. This channel was active in late 2025 with a significant divestiture. On November 6, 2025, CMCT entered an agreement to sell its lending business for approximately $44 million. The estimated net proceeds from this sale, after debt and expenses, are about $31 million. This follows a pattern of balance sheet strengthening, which included completing four refinancings across seven assets and extending debt maturities on two multifamily assets.

The company also used debt financing channels in early 2025, which often involves investment banks or specialized lenders:

• Closed a $5.0 million mortgage loan on an office property in Los Angeles, California, during Q1 2025.
• Closed a $35.5 million variable-rate mortgage on an office property in Austin, Texas, on April 3, 2025.
• Refinanced an $81.0 million mortgage loan at a multifamily property in Oakland, CA.

Public Equity Markets (NASDAQ and TASE) for Capital Raising

Creative Media & Community Trust Corporation raises capital and manages its shareholder base through its listings on the NASDAQ and TASE (Tel Aviv Stock Exchange). While no new equity issuance for capital raising was detailed for late 2025, significant capital structure management occurred via debt paydown and a stock adjustment. The company fully repaid and retired its $169 million recourse corporate-level credit facility in early April 2025, utilizing proceeds from property-level financing.

To manage its share structure, CMCT completed a 1-for-25 reverse stock split effective January 6, 2025. As of the close on November 20, 2025, the reported Market Cap was $10.17 million with 0.79M shares outstanding. The company also manages shareholder distributions via preferred stock dividends, declaring Q3 2025 dividends on Series A, Series A1, and Series D Preferred Stock payable on October 15, 2025. For instance, the Series A1 Preferred Stock quarterly dividend was $0.426875 per share for Q3 2025.

Here are the key public market and capital structure actions:

• Exchanges: NASDAQ and TASE.
• Reverse Stock Split: 1-for-25 effective January 6, 2025.
• Recourse Credit Facility Repaid: $169 million retired in April 2025.
• Market Capitalization (as of Nov 20, 2025): $10.17 million.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Customer Segments

You're looking at the core groups Creative Media & Community Trust Corporation (CMCT) serves as of late 2025, right after their Q3 reporting. It's a mix of established tenants, new renters, deep-pocketed partners, and the public market watching every move. Honestly, the numbers show a company in transition, pivoting hard toward multifamily while managing a challenging office footprint.

Here's the quick math on the primary customer groups based on the latest available data from the third quarter of 2025.

The office segment is definitely feeling the pressure, with occupancy down year-over-year, though leasing activity is picking up-they executed over 80,962 square feet of leases with terms longer than 12 months in Q3 2025 alone. Still, the multifamily side is showing resilience, which is exactly what management is banking on.

For the partners funding this pivot, the institutional side is crucial:

• Development of the 1915 Park multifamily asset is a joint venture with an international pension fund.
• The company's portfolio of Unconsolidated Joint Ventures includes one office property and multiple multifamily sites.
• The Q2 2025 multifamily segment NOI was negatively affected by an unrealized loss on investment in real estate at one of these unconsolidated joint ventures.

Finally, you have the public shareholders watching the stock and the bottom line. They are clearly focused on liquidity and balance sheet strength, especially after the company announced a major divestiture.

• Net loss attributable to common stockholders for Q3 2025 was $(17.7) million, a significant improvement from the $(34.8) million loss in Q3 2024.
• Core Funds From Operations (FFO) attributable to common stockholders was negative $(10.5) million for the quarter ended September 30, 2025.
• The company announced the sale of its lending business for approximately $44 million to align with its core real estate focus.
• CMCT stock closed at $6.78 on the day of the Q3 2025 report, with premarket trading seeing a further drop to $6.6.

Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Cost Structure

You're looking at the hard costs Creative Media & Community Trust Corporation (CMCT) is dealing with as it pivots its strategy, which means we need to focus on the outflows that hit the bottom line. Honestly, the cost structure right now is heavily influenced by debt service and the one-time costs associated with its strategic realignment.

Significant interest expense on mortgage loans and debt facilities is a major component. While CMCT has been active in refinancing to manage this, the underlying cost of capital remains a pressure point. For instance, in the second quarter of 2025, interest expense rose by $1.3 million compared to the prior year, driven by a higher aggregate debt balance and associated transaction costs. This pressure is evident even as the company works to de-lever; they completed the full repayment and retirement of their recourse credit facility, which carried a balance of $169.3 million as of September 2024, using proceeds from new non-recourse asset-level financing. You can see the debt structure in the table below, though this reflects older data, it shows the mix of fixed versus variable exposure.

Property operating expenses directly impact the Net Operating Income (NOI) you see reported. The overall segment NOI for the third quarter of 2025 was $7.0 million, a drop from $9.8 million in the second quarter of 2025, showing that operating costs relative to revenue were challenging across the portfolio. The segment performance highlights where these expenses are hitting hardest:

• Office segment NOI for Q3 2025 was $5.0 million, down from $5.4 million in Q3 2024, with specific issues noted from higher real estate taxes in Austin, Texas.
• The Hotel segment NOI plummeted to $850,000 in Q3 2025, down from $4.2 million in the prior quarter, partly due to operational impacts from ongoing renovations.
• Multifamily NOI showed resilience, increasing to $792,000 in Q3 2025 compared to $508,000 in Q3 2024, partially due to reductions in real estate taxes in Oakland, California.

General and administrative costs, including management fees to CIM Group affiliates, are structured based on the asset value. To be defintely clear, the management fee structure was significantly altered in early 2022 via a fee waiver that aimed to reduce the fee by approximately 55%, targeting an annualized cost saving of $0.21 per share. The Base Fee calculation is tiered; for example, it was set at 1% of the net asset value attributable to common stock for assets under $500 million, stepping down to 0.40% for assets over $4 billion. You should note that in Q1 2025, transaction-related costs were down by $664,000, which helped narrow the net loss for that period.

Development and capital expenditure costs are ongoing, primarily focused on the strategic pivot to multifamily assets. A key recent expenditure was the completion of the 1915 Park Ave. project in Echo Park, Los Angeles, a 36-unit modern apartment community. This project was built on a former surface parking lot adjacent to the 1910 W. Sunset office tower. The company also completed four refinancings across seven assets as part of its balance sheet strengthening plan, which involves capital deployment for reserves, such as the $22.9 million in reserves for leasing costs associated with one of the financings.

Finally, the cost structure includes significant one-time items related to the strategic shift, specifically severance and transaction costs related to the lending division sale and CFO transition. Creative Media & Community Trust Corporation entered an agreement to sell its lending business for an estimated purchase price of approximately $44 million (net of debt). The expected net cash proceeds to CMCT are about $31 million, after accounting for debt payoff and transaction expenses. This transition involves the resignation of the Executive Vice President, CFO, Treasurer, and Secretary, Barry Berlin. His separation agreement outlines a severance package of $350,000 plus an additional $270,000 if his resignation is effective on or before December 14, 2025, or $250,000 if it is on or after December 15, 2025. Finance: draft 13-week cash view by Friday.

Creative Media & Community Trust Corporation (CMCT) - Canvas Business Model: Revenue Streams

You're looking at the top-line numbers for Creative Media & Community Trust Corporation (CMCT) as of late 2025. The trailing 12-month revenue, ending September 30, 2025, clocked in at $115.68 million. For that specific third quarter of 2025, total revenue was reported at $26.2 million.

Office Rental Income remains a core component, though the portfolio is navigating current market conditions. The annualized rent per occupied square foot was $60.22 as of the end of Q3 2025. This segment generated a Net Operating Income (NOI) of $5.0 million for the three months ended September 30, 2025. Honestly, the leasing progress is what you want to watch here.

Multifamily Rental Income is driven by the 696 operating units across four properties, plus any new lease-ups you're bringing online. This segment showed some resilience, posting a segment NOI of $792,000 for the third quarter of 2025. That's a positive sign as the company pivots its focus toward these premier assets.

Hotel Operating Revenue comes primarily from the 505-room Sheraton Grand Sacramento. While renovations were recently completed, the Q3 2025 segment NOI was $850,000, reflecting some short-term disruption from that work and seasonal factors. Still, the completion of the renovation sets up better revenue capture going forward.

Lending Interest Income, which is tracked as segment NOI, is a declining stream as the company executes its strategic shift. For Q3 2025, this segment contributed $314,000 in NOI, down from $688,000 in the prior year period due to loan payoffs and lower rates. You should note that Creative Media & Community Trust Corporation entered an agreement to sell this entire lending business for approximately $44 million, pending closing.

Here's a quick look at the segment performance for the third quarter of 2025:

The operational metrics supporting these revenue streams show a few key points you need to track:

• Office portfolio was 73.6% leased at September 30, 2025.
• Executed 80,962 square feet of leases longer than 12 months in Q3 2025.
• Refinanced an $81.0 million mortgage loan at a multifamily property.
• The company reported a net loss attributable to common stockholders of $(17.7) million for the quarter.