Stonegate Capital Partners has initiated coverage on Creative Media & Trust Corp. (NASDAQ: CMCT), marking a pivotal shift in the company’s narrative from balance sheet repair to funds from operations (FFO) conversion. The coverage launch follows CMCT’s first-quarter 2026 update, which, despite being clouded by a late-quarter preferred redemption, signals a cleaner test of the company’s post-recapitalization earnings power.
The Dallas-based real estate investment trust has made substantial progress in restructuring its capital stack. Since September 2024, CMCT has redeemed $396.2 million of preferred stock, sold its First Western asset, 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 annual FFO by approximately $16.0 million, beginning in the second quarter of 2026. This benefit makes the upcoming quarters a clearer measure of the company’s earning capacity.
According to Stonegate, the key equity driver for CMCT is now whether lower preferred dividends, improving multifamily occupancy, completed hotel renovations, and refinancing activity translate into visible FFO recovery. The first quarter of 2026 was distorted by the late-March redemption, office-related items, hotel disruption, and lost lending net operating income. As a result, the second quarter of 2026 is expected to provide a cleaner baseline for evaluating performance.
CMCT’s operating upside hinges on several factors. Multifamily occupancy is improving, and hotel renovations are complete. The company’s ability to execute on refinancing and liquidity initiatives will drive the next phase of its thesis. The recapitalization efforts have positioned CMCT to focus on converting its operational improvements into sustainable FFO growth.
Stonegate Capital Partners is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets, offers investment banking, equity research, and capital raising services for public and private companies. The initiation of coverage on CMCT underscores the firm’s focus on companies undergoing significant strategic transformations.
For more details, the full announcement is available at Stonegate Inc.
This news story relied on content distributed by Reportable. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Stonegate Capital Partners Initiates Coverage on Creative Media & Trust Corp., Highlighting Shift to FFO Recovery.