Company profile

Ticker
CMCT
Exchange
CEO
David Thompson
Employees
Incorporated in
Location
Fiscal year end
Former names
PMC Commercial Trust
SEC CIK
IRS number
756446078

CMCT stock data

(
)

Calendar

8 Aug 19
25 Aug 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 36.86M 47.28M 50.13M 47.64M
Net income 52.57M 291.8M -906K -528K
Diluted EPS 1.07 6.3 -0.11 -0.1
Net profit margin 143% 617% -1.81% -1.11%
Operating income 52.85M 291.94M 25.33M
Net change in cash 74.24M 244.5M -42.11M 5.85M
Cash on hand 373.67M 299.43M 54.93M 97.04M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 197.72M 236.38M 265.93M 276.95M
Net income 1.12M 379.74M 34.55M 24.39M
Diluted EPS -0.33 5.47 0.38 0.25
Net profit margin 0.57% 161% 12.99% 8.81%
Operating income* 66.72M 30.54M
Net change in cash -74.38M -15.14M 5.35M 113.59M
Cash on hand 54.93M 129.31M 144.45M 139.1M

Financial data from company earnings reports. *Asterisk values are approximate.

Financial report summary

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Competition
PhoenixIllinois
Risks
  • We may be unable to pay or maintain cash distributions or increase distributions to stockholders over time.
  • Distributions at any point in time may not reflect the current performance of our properties or our current operating cash flow.
  • If we seek to internalize the management functions provided pursuant to the Master Services Agreement and the Investment Management Agreement, we could incur substantial costs and lose certain key personnel.
  • Uninsured losses or losses in excess of our insurance coverage could materially adversely affect our financial condition and cash flows, and there can be no assurance as to future costs and the scope of coverage that may be available under insurance policies.
  • Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and or damage to our business relationships, all of which could negatively impact our financial results.
  • If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results.
  • Neither the Master Services Agreement nor the Investment Management Agreement may be terminated by us (except in limited circumstances for cause in the case of the Master Services Agreement) and the Master Services Agreement may be assigned by the Administrator in certain circumstances without our consent, either or both of which may have a material adverse effect on us.
  • The Administrator and Operator are entitled to receive fees for the services they provide regardless of our performance, which may reduce their incentive to devote time and resources to our portfolio.
  • The Operator may undertake transactions that are motivated, in whole or in part, by a desire to increase its compensation.
  • The Operator, the Administrator and their respective affiliates engage in real estate activities that could compete with us and our subsidiaries, which could result in decisions that are not in the best interests of our stockholders.
  • Certain of our directors and executive officers may face conflicts of interest related to positions they hold with the Operator, the Administrator, CIM Group and their affiliates, which could result in decisions that are not in the best interest of our stockholders.
  • The CIM Urban Partnership Agreement contains provisions that give rights to certain unaffiliated members of CIM REIT to influence the business and operations of CIM Urban; such members may have interests that are adverse to our stockholders and the exercise of such rights may negatively impact the rights of our stockholders, or our business.
  • Certain provisions of Maryland law could inhibit changes in control.
  • We are controlled by an affiliate of CIM Group.
  • We are a "controlled company" within the meaning of the rules of Nasdaq and, as a result, qualify for, and currently rely on, exemptions from certain corporate governance requirements. Holders of our Common Stock do not have the same protections afforded to stockholders of companies that are subject to such requirements.
  • If we were to be deemed an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), applicable restrictions could make it impractical for us to continue our business as contemplated and could have an adverse effect on our business.
  • The Operator may change its acquisition process, or elect not to follow it, without stockholder consent at any time, which may adversely affect returns on our assets.
  • The power of the Board of Directors to revoke our REIT election without stockholder approval may cause adverse consequences to our stockholders.
  • The MGCL or our Charter may limit the ability of our stockholders or us to recover on a claim against a director or officer who negligently causes us to incur losses.
  • The liability of the Administrator and the Operator to us under the Master Services Agreement and the Investment Management Agreement, respectively, is limited and we and CIM Urban have agreed to indemnify the Administrator and the Operator, respectively, against certain liabilities. As a result, we could experience poor performance or losses for which neither the Administrator nor the Operator would be liable.
  • Our operating performance is subject to risks associated with the real estate industry.
  • A significant portion of our properties, by aggregate net operating income and square feet, are located in California and the District of Columbia. We are dependent on the California and the District of Columbia real estate markets and economies, and are therefore susceptible to risks of events in those markets that could adversely affect our business, such as adverse market conditions, changes in local laws or regulations and natural disasters.
  • Capital and credit market conditions may adversely affect demand for our properties and the overall availability and cost of credit.
  • Office buildings that have government tenants are subject to the risks associated with conducting business with governments.
  • The U.S. Government's "green lease" policies may adversely affect us.
  • Tenant concentration increases the risk that cash flow could be interrupted.
  • If a major tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which could have a material adverse effect on our financial condition and ability to pay distributions to our stockholders.
  • We have assumed, and in the future may assume, liabilities in connection with our property acquisitions, including unknown liabilities.
  • We may be adversely affected by trends in the office real estate industry.
  • We may be unable to renew leases or lease vacant office space.
  • A significant portion of our net operating income is expected to come from our hotel and, as a result, our operating performance is subject to the cyclical nature of the lodging industry.
  • The seasonality of the lodging industry may cause quarterly fluctuations in our revenues.
  • Our hotel has an ongoing need for renovations and potentially significant capital expenditures and the costs of such activities may exceed our expectations.
  • The increasing use of online travel intermediaries by consumers may adversely affect our profitability.
  • Increased use of technology may reduce the need for business-related travel.
  • We are subject to risks associated with the employment of hotel personnel, particularly with respect to unionized labor.
  • We may be unable to deploy capital in a way that grows our business and, even if consummated, we may fail to successfully integrate and operate acquired properties.
  • We may be unable to successfully expand our operations into new markets.
  • We may deploy capital outside of the United States, which would subject us to additional risks that may affect our operations unfavorably.
  • We are subject to risks and liabilities unique to joint venture relationships.
  • Our properties may be subject to impairment charges.
  • We may obtain only limited warranties when we purchase a property and typically have only limited recourse in the event our due diligence did not identify any issues that lower the value of our property.
  • We may be unable to sell a property if or when we decide to do so, including as a result of uncertain market conditions.
  • We may be unable to secure funds for our future long-term liquidity needs.
  • Income from our long-term leases is an important source of our cash flow from operations and is subject to risks related to increases in expenses and inflation.
  • We may finance properties with lock-out provisions, which may prohibit us from selling a property or may require us to maintain specified debt levels for a period of years on some properties.
  • Increased operating expenses could reduce cash flow from operations and funds available to deploy capital or make distributions.
  • The market environment may adversely affect our operating results, financial condition and ability to pay distributions to our stockholders.
  • Real estate-related taxes may increase, and if these increases are not passed on to tenants, our income will be reduced.
  • Our operating results may be negatively affected by development and construction delays and the resultant increased costs and risks.
  • We face significant competition.
  • In connection with the ownership and operation of real estate assets, we may be potentially liable for costs and damages related to environmental matters.
  • Changes in U.S. accounting standards regarding operating leases may make the leasing of our properties less attractive to our potential tenants, which could reduce overall demand for our leasing services.
  • Changes in accounting standards may adversely impact our financial condition and or results of operations.
  • Compliance with the ADA and fire, safety and other regulations may require us to make unanticipated expenditures that could significantly reduce the cash available for distributions on our Common Stock or Preferred Stock.
  • We have incurred significant indebtedness and may incur significant additional indebtedness on a consolidated basis.
  • We intend to rely in part on external sources of capital to fund future capital needs and, if we encounter difficulty in obtaining such capital, we may not be able to meet maturing obligations or make additional acquisitions.
  • High interest rates may make it difficult for us to finance or refinance assets, which could reduce the number of properties we can acquire and the amount of cash distributions we can make.
  • Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to our stockholders.
  • We may not be able to generate sufficient cash flow to meet our debt service obligations.
  • Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.
  • Interest-only indebtedness may increase our risk of default and ultimately may reduce our funds available for distribution to our stockholders.
  • Our loans secured by real estate and our real estate owned ("REO") properties are typically illiquid and their values may decrease.
  • Our lending operations have an industry concentration, which may negatively impact our financial condition and results of operations.
  • Establishing loan loss reserves entails significant judgment and may negatively impact our results of operations.
  • Our SBA 7(a) Program loans are subject to delinquency, foreclosure and loss, any or all of which could result in losses.
  • Mezzanine loans are subject to delinquency, foreclosure and loss, any or all of which could result in losses.
  • We operate in a competitive market for real estate opportunities and future competition for commercial real estate collateralized loans may limit our ability to originate or dispose of our target loans and could also affect the yield of these loans.
  • We may be subject to lender liability claims.
  • Failure to qualify and maintain our qualification as a REIT would have significant adverse consequences to us and the value of our securities.
  • Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.
  • Our ownership of and relationship with our taxable REIT subsidiaries will be limited, and a failure to comply with the limits would jeopardize our REIT status and may result in the application of a 100% excise tax.
  • We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability or reduce our operating flexibility, including the recently passed Tax Cuts and Jobs Act.
  • REIT annual distribution requirements may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our objectives and reduce our stockholders' overall return.
  • Non-U.S. stockholders may be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax upon the disposition of our shares.
  • Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax liabilities.
  • Our property taxes could increase due to property tax rate changes or reassessment, which would impact our cash flows.
  • REIT stockholders can receive taxable income without cash distributions.
  • The share transfer and ownership restrictions applicable to REITs and contained in our charter may inhibit market activity in our shares of stock and restrict our business combination opportunities.
  • We may issue shares of our Common Stock at prices below the then-current NAV per share of our Common Stock, which could materially reduce our NAV per share of our Common Stock.
  • Changes in market conditions could adversely affect the market prices of our Common Stock and Series L Preferred Stock.
  • The limited trading market for our Common Stock subjects our share price to greater volatility and, as a result, a holder of our Common Stock may not be able to resell his or her shares at or above the price paid for them.
  • Our Common Stock ranks junior to our Series A Preferred Stock with respect to dividends and upon liquidation.
  • Our Common Stock ranks junior to our Series L Preferred Stock, except to the extent of the Initial Dividend (as defined below), with respect to distributions.
  • Our Common Stock ranks junior to the Series L Preferred Stock upon liquidation, except that our Common Stock ranks senior to any accrued and unpaid Series L Preferred Stock Distribution to the extent of the Initial Dividend.
  • If a Series A Preferred Warrant is exercised through a "cashless exercise," the holder of the Series A Preferred Warrant may recognize gain or loss.
  • The exercise price of our Series A Preferred Warrants is established based on the Applicable NAV (as defined below), and the Applicable NAV may not be indicative of the price at which the shares of Common Stock for which the Series A Preferred Warrants may be exercised would trade.
  • Shares of Common Stock issuable upon exercise of a Series A Preferred Warrant have not been registered under the Securities Act.
  • Holders of our securities may be required to recognize taxable income in excess of any cash or other distributions received from us, and non-U.S. stockholders could be subject to withholding tax on such amounts.
  • We may suffer from delays in deploying capital, which could adversely affect our ability to pay distributions to our stockholders and the value of our securities.
  • The cash distributions received by holders of Common Stock and Preferred Stock may be less frequent or lower in amount than expected by such holders.
  • Our ability to redeem our Preferred Stock or to pay distributions on our Common Stock or Preferred Stock may be limited by Maryland law.
  • Holders of our securities are subject to inflation risk.
  • We have the option to redeem shares of Preferred Stock after the fifth anniversary of the date of initial issuance without the consent of the holder of such shares.
  • The transfer and ownership restrictions applicable to our securities may impair the ability of stockholders to receive shares of our Common Stock upon exercise of the Warrants and, if the Company elects to pay the redemption price in shares of Common Stock, upon redemption of the Preferred Stock.
  • Holders of our Preferred Stock have no voting rights with respect to such shares.
  • The listing of our Common Stock and Series L Preferred Stock on more than one stock exchange may result in price variations that could adversely affect liquidity of the market for our Common Stock and or Series L Preferred Stock.
  • The existing mechanism for the dual‑listing of securities on Nasdaq and the TASE may be eliminated or otherwise altered such that we may be subject to additional regulatory burden and additional costs.
  • Our NAV is an estimate of the fair value of our properties and real estate-related assets and may not necessarily reflect realizable value.
Management Discussion
  • Net income decreased to $1,142,000, or by $378,616,000, for the year ended December 31, 2018, compared to $379,758,000 for the year ended December 31, 2017. The decrease is primarily attributable to the gain on sale of real estate of $401,737,000 recognized in 2017, a decrease of $18,995,000 in net operating income of our operating segments, and an increase of $1,910,000 in corporate general and administrative expenses, partially offset by $13,100,000 in impairment of real estate recognized in 2017, a decrease of $10,924,000 in transaction costs, a decrease of $9,634,000 in interest expense not allocated to our operating segments, a decrease of $5,136,000 in depreciation and amortization expense, and a decrease of $4,781,000 in asset management and other fees to related parties not allocated to our operating segments.
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Removed: obtained, occupy, professional