Dallas, Texas--(Newsfile Corp. - June 1, 2026) - Initiates Coverage on Creative Media & Trust Corp. (NASDAQ: CMCT): Stonegate Capital Partners Initiates Coverage on Creative Media & Trust Corp. (NASDAQ: CMCT). CMCT's 1Q26 update shifts the story from balance sheet repair to FFO conversion. Reported results remained noisy given the late-quarter preferred redemption, but the Company has now redeemed $396.2M of preferred stock since September 2024, sold First Western, retired its recourse credit facility, and moved closer to its long-term target capital structure. The March redemption of $242.8M is expected to improve FFO by approximately $16.0M annually beginning in 2Q26, making the next several quarters a cleaner test of post-recapitalization earnings power. The key equity driver is now whether lower preferred dividends, improving multifamily occupancy, completed hotel renovations, and refinancing activity translate into visible FFO recovery.

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Key Takeaways:

• Recapitalization shifts the story to FFO recovery. CMCT has redeemed $396.2M of preferred stock, retired its recourse facility, and sold First Western, making FFO conversion the key equity driver.
• 2Q26 is the cleaner baseline. 1Q26 was distorted by the late-March redemption, office items, hotel disruption, and lost lending NOI; the $16.0M annual FFO benefit begins in 2Q26.
• Operating upside depends on multifamily, hotels, and refinancing. Multifamily occupancy is improving, hotel renovations are complete, and refinancing/liquidity execution will drive the next phase of the thesis.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Source: Stonegate, Inc.

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