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Creative Media & Community Trust Corp (NASDAQ:CMCT), a real estate investment trust, announced on Monday an extension of its credit facility’s maturity date. The Dallas-based company entered into a Fifth Modification Agreement with JPMorgan Chase (NYSE:JPM) Bank, N.A., which pushes the maturity date from March 31, 2025, to May 31, 2025.
This extension comes as a modification to the Amended and Restated Credit Agreement that some of Creative Media’s wholly-owned subsidiaries had previously entered into in December 2022. The subsidiaries involved include 9460 Wilshire Blvd (BH) Owner, L.P. and CIM/11600 Wilshire (Los Angeles), LP, among others. InvestingPro analysis reveals that the company’s current ratio stands at 0.57, indicating that short-term obligations exceed liquid assets - a key consideration in understanding the timing of this credit facility extension.
As of March 25, 2025, the remaining balance outstanding under the 2022 credit facility was $15 million. The Fifth Modification Agreement’s effective date was backdated to March 25, two days before the report date of March 27, 2025.
The news of the credit facility extension is based on a press release statement and provides the company with additional time to manage its financial obligations. Creative Media & Community Trust Corp’s business address is listed at 5956 Sherry Lane, Suite 700, Dallas, TX 75225, and it operates under the real estate sector with a focus on investment trusts.
The specifics of the Fifth Modification Agreement are detailed in an exhibit attached to the Current Report on Form 8-K filed with the SEC. This extension is a strategic financial move for Creative Media & Community Trust Corp as it navigates its credit commitments in the current economic landscape.
In other recent news, Creative Media and Community Trust (CMCT) reported its fourth-quarter 2024 financial results, revealing a decline in net operating income (NOI) across all business units compared to the previous year. The company’s segment NOI fell to $9.2 million from $10.8 million year-over-year, with decreases noted in office, multifamily, hotel, and lending segments. Notably, CMCT significantly reduced its credit facility from $169 million to $15 million, as part of its strategy to improve the balance sheet and liquidity. CMCT is focusing on expanding its multifamily portfolio while reducing traditional office assets, amid challenges in financing office properties and adapting to work-from-home trends. The company also reported negative funds from operations (FFO) of $8.7 million, or -$0.93 per diluted share, and core FFO of negative $7 million, or -$0.75 per diluted share. Despite these financial challenges, CMCT has made progress in refinancing efforts, including closing mortgages on several properties. These developments are part of CMCT’s strategic initiatives to strengthen its financial position and focus on multifamily growth.
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