Stonegate Capital Partners has initiated coverage on Creative Media & Trust Corp. (NASDAQ: CMCT), marking a shift in the company's narrative from balance sheet repair to funds from operations (FFO) conversion. According to the research announcement, CMCT's first-quarter 2026 update indicates that the company has made significant progress in restructuring its capital, with the redemption of $396.2 million in preferred stock since September 2024. The company has also sold First Western, retired its recourse credit facility, and moved closer to its long-term target capital structure.
The March 2026 redemption of $242.8 million in preferred stock is expected to improve FFO by approximately $16.0 million annually, beginning in the second quarter of 2026. This makes the upcoming quarters a cleaner test of the company's post-recapitalization earnings power. Stonegate analysts note that while first-quarter results were noisy due to the late-March preferred redemption, office items, hotel disruption, and lost lending NOI, the key equity driver moving forward is whether lower preferred dividends, improving multifamily occupancy, completed hotel renovations, and refinancing activity will translate into visible FFO recovery.
CMCT's multifamily occupancy is improving, hotel renovations are complete, and the company is focusing on refinancing and liquidity execution to drive the next phase of its thesis. The full announcement, including downloadable images and bios, is available here.
Stonegate Capital Partners is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking, equity research, and capital raising for public and private companies.
