Good day, and welcome to the Creative Media & Community Trust Corporation Second Quarter 2025 Earnings Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Steve Altebrando. Please go ahead.

Hello, everyone, and thank you for joining us. My name is Steve Altebrando, the Portfolio Oversight for CMCT. Also on the call today are David Thompson, our Chief Executive Officer; and Barry Berlin, our Chief Financial Officer. This call is being webcast and will be temporarily archived on the Investor Relations section of our website, where you can also find our earnings release. Our earnings release includes a reconciliation of non-GAAP financial measures discussed during today's call. During this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of, assumptions made by and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and other factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will prove to be incorrect. Therefore, actual future results can be expected to differ from our expectations, and those differences may be material. For a more detailed description of potential risks, please refer to our SEC filings, which can be found in the Investor Relations section of our website. With that, I'll turn the call over to David Thompson.

Thanks, Steve, and thank you to everyone for joining our call today. I'll start with an update on business trends. The progress we're making with our strategic initiatives and then walk through our results for the quarter. Last quarter, we noted that we were seeing an uptick in our office leasing pipeline. We are pleased that this has translated into a significant increase in leasing activity. In 2025, we executed approximately 140,000 square feet of leases through the end of July. This represents an over 55% increase from the prior year period. This activity is primarily driven from our Los Angeles and Austin properties. At the same time, we continue to see uneven demand at our 3 Oakland assets, 2 of which are premier Class A multifamily assets. We're working hard to drive occupancy and contain costs and are encouraged by market improvements in the adjacent San Francisco market. Historically, Oakland has followed the San Francisco market. We remain focused on executing the full scope of the business plan we previously laid out. Today, our key areas of focus are improving our balance sheet and liquidity, improving property level performance and evaluating asset sales as part of our broader strategic plan. In terms of our balance sheet and liquidity, we are pleased that we continue to make significant progress on the goals we outlined last September. Since then, we have successfully secured property level financing on 7 of our assets. The proceeds from these financings have allowed us to fully replay and retire our recourse credit facility, which carried a balance of approximately $169 million at the end of the third quarter of 2024. In addition, the financings have supported key growth initiatives, including lease-up efforts at our Beverly Hills, Culver City, Brentwood and Austin properties and renovations at our…

Thanks, David. I would like to give a little more detail on our segments. Starting with multifamily, we continue to focus on growing our premier newer vintage multifamily portfolio. As David mentioned, we believe there's a significant opportunity to grow our multifamily net operating income through increasing rental rates and occupancy and lowering costs. Starting in Los Angeles, we continue to make progress on our lease-up at 701 South Hudson, the residential component of our partial office residential conversion completed towards the end of last year. Multifamily occupancy at the property was approximately 68% at the end of this quarter, up from 41% at the end of the prior quarter. As a reminder, the top 2 floors of this property were converted into 68 high-end residential units, while the ground floor creative office known as 4750 Wilshire remains 100% leased. As mentioned on our previous calls, we believe there's an opportunity to develop additional units on the back surface lot of the property given recent zoning changes. We will provide additional details in the future as we progress through the predevelopment phase. Also in Los Angeles, we have 1 development underway at 1915 Park, which is a 36 ground-up -- 36-unit ground-up multifamily development. We expect to begin lease-up of this asset in the third quarter. This development is a joint venture with an international pension fund and is being built on land adjacent to our office building at 1910 West Sunset in Echo Park, a highly desirable walkable submarket with attractive dining and entertainment options. In Oakland, we saw a slight pickup in total occupancy in the quarter. The market is still challenging, but we believe our properties will benefit near term from lower operating costs and ultimately benefit from a lack of new construction in the Oakland residential…

Good morning. I'm going to spend a few minutes going over the comparative financial highlights for the second quarter of 2025 versus the second quarter of 2024. Starting with our segment NOI, which was $9.8 million in the second quarter of 2025 and compared to $16.2 million in the prior year comparable period. Broken down by segment, the decrease of $6.4 million was driven by decreases of $3.4 million in NOI from our office properties, $2.1 million from our multifamily properties, $162,000 from our hotel property and $790,000 from our Lending business. Our Office Segment NOI for Q2 2025 was $5.5 million versus $8.9 million during Q2 2024. The decrease was primarily driven by a decrease in rental revenue at our office property in Oakland, California, attributable to a decrease in occupancy as well as by a decrease in income from our unconsolidated office entities due to a decrease in the unrealized gain recognized on their investments in real estate. Our Multifamily Segment NOI was $189,000 during Q2 2025 compared to income of $2.3 million from the prior year comparable period. The decrease was driven by an unrealized loss on investment in real estate and one of our unconsolidated joint ventures during the second quarter of 2025 as well as a decrease in revenues at our multifamily properties in Oakland, California as a result of the decline in occupancy and monthly rent per occupied unit, net of rent concessions compared to the prior year comparable period. Our Hotel Segment NOI for Q2 2025 was $4.2 million compared to $4.3 million in prior year comparable period. The decrease was driven by a decrease in food and beverage sales revenues. Our Lending division NOI decreased to a loss of $47,000 compared to NOI of $743,000 in the prior year comparable period, primarily…

[Operator Instructions]. I'm seeing no questions. This concludes the question-and-answer session and today's conference call. Thank you for attending today's presentation. You may now disconnect.