CMCT Declares Common Stock Dividend

Rhea-AI Summary

CMCT (NASDAQ: CMCT and TASE: CMCT) Declares Quarterly Cash Dividend of $0.085 per Share

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.085 per share by CMCT represents a tangible return to shareholders and it's a significant indicator of the company's current financial health and future outlook. Dividends are often seen as a sign of a company's stability and confidence in its ability to generate cash flow. Investors typically view such announcements positively, as it suggests a reliable income stream, especially in markets that are volatile or bearish.

However, the sustainability of dividend payments can be contingent on the company's ongoing earnings and financial strategy. A critical evaluation of CMCT's financial statements, payout ratios and industry-specific cash flow trends would be essential to assess the long-term viability of these dividends. Additionally, the dividend yield, calculated by annualizing the dividend and dividing by the stock price, is a critical measure for investors to compare the return against other investment opportunities.

Economist

From an economic perspective, the distribution of dividends can have a broader impact on the market. It can signal corporate sector health and influence investor sentiment. When a company like CMCT declares a dividend, it can lead to a reallocation of funds in the market, as investors might be drawn to the perceived safety and consistent returns of dividend-paying stocks.

Moreover, the announcement affects not just current shareholders but can also attract potential investors looking for steady income. This can increase the demand for the company's stock, potentially driving up the share price, although this effect may vary depending on overall market conditions and investor expectations.

Industry Analyst

The real estate industry, in which CMCT operates, typically carries a reputation for providing regular dividends due to the nature of its revenue streams, often derived from long-term lease agreements. The declaration of a dividend by CMCT is consistent with industry norms, yet the size and frequency of the dividend payment can be indicative of how well the company is performing relative to its peers.

Assessing the company's dividend against industry averages and considering the current economic climate, including interest rates and real estate market trends, is critical. These factors can influence the company's operational costs, borrowing expenses and ultimately, its profitability. A thorough analysis would consider these aspects to provide a comprehensive view of CMCT's strategic financial decisions.

DALLAS--(BUSINESS WIRE)-- CMCT (NASDAQ: CMCT and TASE: CMCT) announced today that its Board of Directors has declared a quarterly cash dividend of $0.085 per share of common stock. The dividend will be paid on January 16, 2024 to stockholders of record at the close of business on January 2, 2024.

ABOUT CMCT

Creative Media & Community Trust Corporation (“CMCT”) is a real estate investment trust that owns, operates and develops premier multifamily and creative office assets in vibrant communities throughout the United States. CMCT is a leader in creative office, acquiring and developing properties catering to rapidly growing industries such as technology, media and entertainment. CMCT applies the expertise of CIM to the acquisition, development, and operation of top-tier multifamily properties situated in dynamic markets with similar business and employment characteristics to its creative office investments. CMCT also owns one hotel in Northern California and a lending platform that originates loans under the Small Business Administration (“SBA”)’s 7(a) loan program. CMCT is operated by affiliates of CIM Group, L.P., a vertically-integrated owner and operator of real assets with multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing, and onsite property management capabilities (www.creativemediacommunity.com).

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), which are intended to be covered by the safe harbors created thereby. Such forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “project,” “target,” “expect,” “intend,” “might,” “believe,” “anticipate,” “estimate,” “could,” “would,” “continue,” “pursue,” “potential,” “forecast,” “seek,” “plan,” or “should,” or “goal” or the negative thereof or other variations or similar words or phrases. Such forward-looking statements include, among others, statements about CMCT’s plans and objectives relating to future growth and outlook. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the timing, form, and operational effects of CMCT’s development activities, (ii) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (iii) fluctuations in market rents, (iv) the effects of inflation and higher interest rates on the operations and profitability of CMCT and (v) general economic, market and other conditions. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed under the section “Risk Factors” in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2022. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT’s control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT’s objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231220921305/en/

Media Relations:

Karen Diehl

Diehl Communications

310-741-9097

karen@diehlcommunications.com

or

Investor Relations:

Steve Altebrando, 646-652-8473

shareholders@creativemediacommunity.com

Source: Creative Media & Community Trust Corporation

FAQ

What is the ticker symbol for CMCT?

The ticker symbol for CMCT is NASDAQ: CMCT and TASE: CMCT.

How much is the quarterly cash dividend declared by CMCT?

CMCT has declared a quarterly cash dividend of $0.085 per share of common stock.

When will the dividend be paid to the stockholders?

The dividend will be paid on January 16, 2024.

Who is eligible to receive the dividend from CMCT?

Stockholders of record at the close of business on January 2, 2024, are eligible to receive the dividend from CMCT.