CMCT Stock More Than Doubles Pre-Market Today: Here’s Why

• Creative Media has agreed to divest its lending business to PG FR Holding, LLC.
• Following the announcement, the company’s stock rose by over 110% in Wednesday’s premarket. 
• As part of the transaction’s closing, Barry Berlin will step down from his roles as Executive Vice President and Chief Financial Officer.

Creative Media & Community Trust (CMCT) stock more than doubled in Wednesday’s premarket after the company announced that it has signed a definitive agreement to divest its lending business to PG FR Holding, LLC. 

Creative Media & Community’s stock traded over 122% higher in Wednesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels. 

Strategic Shift Toward Multifamily Growth

The deal, based on asset values as of September 30, is expected to total approximately $44 million, net of existing securitized loan debt.

CMCT anticipates receiving roughly $31 million in net proceeds after accounting for debt repayments, transaction-related costs, and other adjustments. The sale aligns with the company’s ongoing strategy to refocus its business around its core real estate holdings, particularly its multifamily portfolio.

Since the third quarter of 2024, CMCT has refinanced seven assets across four transactions, extended the maturity dates on two multifamily properties, and repaid its recourse credit facility in full.

Management Changes

As part of the transaction’s closing, Barry Berlin will step down from his roles as Executive Vice President, Chief Financial Officer, Treasurer, and Secretary of CMCT. Following his departure, Brandon Hill will assume the roles of CFO and Treasurer of the company.

Creative Media is a real estate investment trust that invests in, manages, and builds apartment and office properties across major U.S. cities. The company focuses on office spaces designed for fast-growing sectors like technology, media, and entertainment.

CMCT stock has lost over 93% in the last 12 months. 

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