Creative Media & Community Trust announces reverse stock split

DALLAS - Creative Media & Community Trust Corporation (NASDAQ:CMCT), a real estate investment trust, has announced a reverse stock split of its common stock at a one-for-twenty-five ratio, set to take effect on April 15, 2025. This action, approved by the company's Board of Directors and stockholders, is expected to see CMCT's stock begin trading on a split-adjusted basis from the market open on the same day.

The reverse stock split will consolidate every twenty-five shares of issued and outstanding CMCT common stock into one share. Consequently, no fractional shares will be issued. Shareholders who would have received a fractional share will instead get a cash payment based on the closing price of CMCT's common stock on the Nasdaq Global Market as of April 15, 2025.

For shareholders who hold their CMCT common stock in book-entry form or through a bank, broker, or other nominee, there is no need for any action on their part. The effects of the reverse stock split will be automatically reflected in their accounts.

Following this corporate action, CMCT's trading symbol on the Nasdaq Global Market will continue to be CMCT, with a new CUSIP number of 12564W102 assigned to the common stock post-effective time of the split.

It is important to note that CMCT common stock will not be traded on the Tel Aviv Stock Exchange (TASE) on April 15, 2025, to allow the exchange to make the necessary adjustments for the reverse stock split. Trading is expected to resume after these adjustments have been made.

CMCT specializes in owning, operating, and developing multifamily and creative office assets in the United States, targeting industries such as technology, media, and entertainment. The company, with a market capitalization of $3.43 million and annual revenue of $123.71 million, is managed by affiliates of CIM Group, L.P. InvestingPro analysis reveals the company maintains a significant dividend yield of approximately 13%, though it faces challenges with short-term obligations exceeding liquid assets. For deeper insights into CMCT's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US equities.

This news is based on a press release statement from Creative Media & Community Trust Corporation.

In other recent news, Creative Media & Community Trust Corp reported its fourth-quarter 2024 financial results, revealing a decline in net operating income (NOI) across all business segments compared to the previous year. The company's segment NOI fell to $9.2 million from $10.8 million year-over-year, with reductions noted in office, multifamily, hotel, and lending units. Additionally, the company reduced its credit facility from $169 million to $15 million, indicating a strategic move to manage its financial obligations more effectively. Creative Media's focus on expanding its multifamily portfolio while reducing office assets was highlighted as a key strategic direction. The company also announced an extension of its credit facility's maturity date to May 31, 2025, through a Fifth Modification Agreement with JPMorgan Chase Bank, N.A. This extension provides Creative Media with additional time to address its financial commitments. Despite these efforts, the company's funds from operations (FFO) remained negative at $8.7 million, or negative $0.93 per diluted share. The company continues to navigate challenges in the real estate market, particularly in financing office properties and adapting to changing work trends.

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