TLDR
- CMCT stock jumps 69% after $44M lending division sale, boosting future growth.
- Creative Media & Community Trust’s stock surges with $44M division sale news.
- CMCT’s 69% stock surge follows $44M sale and strategic leadership change.
- CMCT announces $44M lending division sale, propelling stock up by 69%.
- CMCT stock rises 69% as company sells lending division, eyes multifamily growth.
Creative Media & Community Trust (CMCT)Â witnessed a significant surge in its stock price, soaring 69.58% to $8.14.
Creative Media & Community Trust Corporation, CMCT
This sharp increase reflects investor optimism, likely driven by the company’s announcement of selling its lending division to PG FR Holding, LLC. The deal, valued at $44 million, comes ahead of the company’s Q3 2025 earnings call on November 14. CMCT’s strong performance in the market signals growing confidence in its business strategy and future prospects.
Lending Division Sale to Peachtree Group
CMCT confirmed it has entered into a definitive agreement to sell its lending division to Peachtree Group affiliate, PG FR Holding. The transaction is valued at approximately $44 million, net of outstanding debt related to a 2023 securitization of certain loan receivables. The deal is set to yield the company around $31 million in net cash proceeds after transaction expenses and debt payments.
The sale aligns with CMCT’s strategy to focus on its core multifamily portfolio. Management has emphasized its goals of strengthening its balance sheet and improving liquidity. Since Q3 2024, CMCT has successfully refinanced seven assets, extended debt maturities on multifamily assets, and fully repaid its recourse credit facility.
Leadership Change and Company Transition
As part of the transaction, CMCT will see a leadership transition. Barry Berlin, the company’s Executive Vice President and Chief Financial Officer, will resign from his roles. Berlin will join the buyer, Peachtree Group, after the transaction’s closure, marking a shift in CMCT’s executive leadership.
Brandon Hill will take over as the company’s new Chief Financial Officer and Treasurer, following Berlin’s departure. The leadership change is a crucial part of CMCT’s restructuring efforts, aimed at optimizing its operations. As CMCT transitions to a more focused strategy, the leadership change signals a new chapter for the company.
Market Impact and Stock Performance
CMCT’s stock price surge has sparked strong interest in the company’s future performance. The market reaction highlights renewed investor confidence, which has been supported by the recent announcement. The 69% surge reflects a combination of factors, including anticipation around the upcoming earnings report and the strategic sale of the lending division.
The sale of the lending division strengthens CMCT’s liquidity position, setting the stage for future growth in its multifamily portfolio. Investors have responded positively to the company’s clear focus on enhancing its core business and improving financial stability. With the closing of the deal, CMCT aims to capitalize on its strengthened balance sheet and move forward with renewed vigor.
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