What changed in this filing

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Item 1. Financial Statements

2025-08-14 compared with 2025-05-09 · 355 added, 261 removed, 944 unchanged (39% of the section changed)

3 unchanged sentences

(In thousands, except share and per share amounts) (Unaudited)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Investments in real estate, net $ 704,775 $ 709,194

17 unchanged sentences

Series A1 cumulative redeemable preferred stock, $ 0.001 par value;

24,851,185 and 25,045,401 shares authorized as of March 31, 2025 and December 31, 2024, respectively;

913,630 and 913,590 shares issued and outstanding as of both March 31, 2025 and December 31, 2024;

24,851,185 and 25,045,401 shares authorized as of June 30, 2025 and December 31, 2024, respectively;

548,876 shares issued and outstanding, respectively, as of June 30, 2025 and 913,630 and 913,590 shares issued and outstanding, respectively, as of December 31, 2024;

liquidation preference of $ 25.00 per share, subject to adjustment

1 unchanged sentence

Series A cumulative redeemable preferred stock, $ 0.001 par value;

31,200,554 and 31,305,025 shares authorized as of March 31, 2025 and December 31, 2024, respectively;

8,820,338 and 4,020,892 shares issued and outstanding, respectively, as of March 31, 2025 and 8,820,338 and 4,125,363 shares issued and outstanding, respectively, as of December 31, 2024;

31,200,554 and 31,305,025 shares authorized as of June 30, 2025 and December 31, 2024, respectively;

8,820,338 and 4,020,892 shares issued and outstanding, respectively, as of June 30, 2025 and 8,820,338 and 4,125,363 shares issued and outstanding, respectively, as of December 31, 2024;

liquidation preference of $ 25.00 per share, subject to adjustment

1 unchanged sentence

Series A1 cumulative redeemable preferred stock, $ 0.001 par value;

24,851,185 and 25,045,401 shares authorized as of March 31, 2025 and December 31, 2024, respectively;

11,327,248 and 8,178,473 shares issued and outstanding, respectively, as of March 31, 2025 and 11,327,248 and 8,372,689 shares issued and outstanding, respectively, as of December 31, 2024;

24,851,185 and 25,045,401 shares authorized as of June 30, 2025 and December 31, 2024, respectively;

11,692,002 and 8,543,187 shares issued and outstanding, respectively, as of June 30, 2025 and 11,327,248 and 8,372,689 shares issued and outstanding, respectively, as of December 31, 2024;

liquidation preference of $ 25.00 per share, subject to adjustment

1 unchanged sentence

Series D cumulative redeemable preferred stock, $ 0.001 par value;

26,991,590 shares authorized as of March 31, 2025 and December 31, 2024;

56,857 and 48,447 shares issued and outstanding, respectively, as of March 31, 2025 and 56,857 and 48,447 shares issued and outstanding, respectively, as of December 31, 2024;

26,991,590 shares authorized as of June 30, 2025 and December 31, 2024;

56,857 and 48,447 shares issued and outstanding, respectively, as of both June 30, 2025 and December 31, 2024;

liquidation preference of $ 25.00 per share, subject to adjustment

1 unchanged sentence

900,000,000 shares authorized;

754,607 shares issued and outstanding as of March 31, 2025 and 466,176 shares issued and outstanding as of December 31, 2024

754,607 shares issued and outstanding as of June 30, 2025 and 466,176 shares issued and outstanding as of December 31, 2024

Additional paid-in capital 1,001,791 994,973

8 unchanged sentences

(In thousands, except per share amounts) (Unaudited)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Rental and other property income $ 15,779 $ 19,249 $ 32,999 $ 38,022

10 unchanged sentences

Depreciation and amortization 6,264 6,456 12,824 12,934

Loss on early extinguishment of debt (Note 7) 88 — 88 —

Impairment of real estate (Note 3) 221 — 221 —

Total Expenses 38,245 36,126 75,540 73,433

Loss from unconsolidated entities ( 1,151 ) ( 326 )

LOSS BEFORE PROVISION FOR INCOME TAXES ( 6,151 ) ( 3,635 )

(Loss) income from unconsolidated entities ( 437 ) 1,123 ( 1,588 ) 797

LOSS BEFORE (BENEFIT) PROVISION FOR INCOME TAXES ( 8,993 ) ( 564 ) ( 15,144 ) ( 4,199 )

Provision for income taxes 158 288 279 558

3 unchanged sentences

Redeemable preferred stock dividends declared or accumulated (Note 11) ( 5,280 ) ( 7,876 ) ( 10,764 ) ( 15,635 )

Redeemable preferred stock deemed dividends (Note 11) — ( 428 ) — ( 428 )

Redeemable preferred stock redemptions (Note 11) — ( 567 ) ( 300 ) ( 1,373 )

4 unchanged sentences

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:

Basic 754 98 665 98

Diluted 754 98 665 98

3 unchanged sentences

(In thousands, except share and per share amounts) (Unaudited)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Common Stock Preferred Stock

22 unchanged sentences

754,607 $ 20 12,247,812 $ 304,484 $ 1,002,913 $ ( 1,014,372 ) $ 293,045 $ 1,590 $ 294,635

Three Months Ended March 31, 2024

Contributions to noncontrolling interests — — — — — — — 8 8

Distributions to noncontrolling interests — — — — — — — ( 285 ) ( 285 )

Stock-based compensation expense — — — — 55 — 55 — 55

Par value adjustment

— ( 19 ) — — 19 — — — —

Reclassification of Series A1 Preferred Stock to Permanent Equity — — 364,714 9,491 ( 1,196 ) — 8,295 — 8,295

Dividends to holders of Series A1 Preferred Stock ($ 0.42688 per share)

— — — — — ( 3,881 ) ( 3,881 ) — ( 3,881 )

Dividends to holders of Series D Preferred Stock ($ 0.35313 per share)

— — — — — ( 17 ) ( 17 ) — ( 17 )

Dividends to holders of Series A Preferred Stock ($ 0.34375 per share)

— — — — — ( 1,389 ) ( 1,389 ) — ( 1,389 )

Net loss — — — — — ( 8,999 ) ( 8,999 ) ( 152 ) ( 9,151 )

Balances, June 30, 2025 754,607 $ 1 12,612,526 $ 313,975 $ 1,001,791 $ ( 1,028,658 ) $ 287,109 $ 1,161 $ 288,270

Six Months Ended June 30, 2024

Common Stock Preferred Stock

19 unchanged sentences

Balances, March 31, 2024 91,146 $ 23 18,298,956 $ 454,782 $ 851,234 $ ( 936,151 ) $ 369,888 $ 2,191 $ 372,079

Distributions to noncontrolling interests

— — — — — — — ( 43 ) ( 43 )

Stock based compensation expense — — — — 55 — 55 — 55

Common dividends ($ 0.085 per share)

— — — — — ( 1,937 ) ( 1,937 ) — ( 1,937 )

Redemption of Series A1 Preferred Stock paid in cash

— — ( 32,002 ) ( 791 ) 69 ( 16 ) ( 738 ) — ( 738 )

Dividends to holders of Series A1 Preferred Stock $ 0.48938 per share)

— — — — — ( 5,491 ) ( 5,491 ) — ( 5,491 )

Redeemable preferred stock accretion — — — — — ( 428 ) ( 428 ) — ( 428 )

Dividends to holders of Series D Preferred Stock ($ 0.35313 per share)

— — — — — ( 17 ) ( 17 ) — ( 17 )

Redemption of Series A Preferred Stock paid in cash

— — ( 287,474 ) ( 7,162 ) 621 ( 558 ) ( 7,099 ) — ( 7,099 )

Dividends to holders of Series A Preferred Stock ($ 0.34375 per share)

— — — — — ( 2,368 ) ( 2,368 ) — ( 2,368 )

Net loss — — — — — ( 796 ) ( 796 ) ( 56 ) ( 852 )

Balances, June 30, 2024 91,146 $ 23 17,979,480 $ 446,829 $ 851,979 $ ( 947,762 ) $ 351,069 $ 2,092 $ 353,161

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(In thousands) (Unaudited)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $ ( 15,423 ) $ ( 4,757 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization, net 12,927 13,111

Impairment of real estate 221 —

Loss on early extinguishment of debt 88 —

Amortization of deferred debt origination costs 1,466 1,133

3 unchanged sentences

Write-offs of uncollectible receivables 687 314

Loss (gain) on interest rate caps 78 ( 55 )

Loss on interest rate caps 99 18

Deferred income taxes ( 117 ) 31

Stock-based compensation 110 110

Loss from unconsolidated entities 1,151 326

Loss (income) from unconsolidated entities 1,588 ( 797 )

Loans funded, held for sale to secondary market ( 3,993 ) ( 10,821 )

9 unchanged sentences

Due to related parties ( 137 ) 2,440

Net cash provided by operating activities 1,208 1,616

Net cash (used in) provided by operating activities ( 1,271 ) 5,540

CASH FLOWS FROM INVESTING ACTIVITIES:

2 unchanged sentences

Investment in unconsolidated entity ( 1,209 ) ( 530 )

Distributions from unconsolidated entity — 330

Loans funded ( 1,331 ) ( 3,607 )

11 unchanged sentences

Redemption of Preferred Stock — ( 18,058 )

Contributions from noncontrolling interests 8 —

Distributions to noncontrolling interests ( 285 ) ( 43 )

Net cash provided by financing activities 16,487 2,460

2 unchanged sentences

(In thousands) (Unaudited)

Three Months Ended

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 3,743 ) 1,414

Six Months Ended

NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 4,990 6,612

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:

15 unchanged sentences

Preferred stock offering costs offset against redeemable preferred stock in permanent equity $ — $ 508

Accrued deferred costs $ 100 $ —

Preferred stock offering costs offset against redeemable preferred stock in temporary equity $ — $ 496

Reclassification of Series A1 Preferred Stock from temporary equity to permanent equity $ 8,295 $ —

Deferred debt origination costs included in accounts payable $ 232 $ —

Write off of deferred debt origination costs $ 158 $ —

Redeemable preferred stock deemed dividends $ — $ 428

Accrued redeemable preferred stock fees $ 183 $ 204

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited)

June 30, 2025 (Unaudited)

ORGANIZATION AND OPERATIONS

18 unchanged sentences

The accompanying financial information reflects all adjustments which are, in the opinion of the Company’s management, of a normal recurring nature and necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The accompanying interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these investments in real estate on the Company’s consolidated financial statements.

As of March 31, 2025, the Company has determined that the trust formed for the benefit of the note holders (the “Trust”) for the securitization of the unguaranteed portion of certain of the Company’s SBA 7(a) loans receivable is considered a VIE.

As of June 30, 2025, the Company has determined that the trust formed for the benefit of the note holders (the “Trust”) for the securitization of the unguaranteed portion of certain of the Company’s SBA 7(a) loans receivable is considered a VIE.

Applying the consolidation requirements for VIEs, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits.

In addition, as of March 31, 2025, the Company has determined that its Unconsolidated Joint Ventures (as defined below) are considered VIEs.

In addition, as of June 30, 2025, the Company has determined that its Unconsolidated Joint Ventures (as defined below) are considered VIEs.

Applying the consolidation requirements for VIEs, the Company determined that it is not the primary beneficiary based on its lack of power to direct activities and its obligations to absorb losses and right to receive benefits.

22 unchanged sentences

When an asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the asset.

The Company did no t recognize any impairment of long-lived assets during the three months ended March 31, 2025 and 2024 (Note 3).

The Company recognized an impairment of long-lived assets of $ 221,000 during the three and six months ended June 30, 2025.

No impairment of long-lived assets were recognized during the three and six months ended June 30, 2024 (Note 3).

Investments in Unconsolidated Entities —The Company accounts for its investments in the unconsolidated joint ventures (the “Unconsolidated Joint Ventures”) under the equity method, as the Company has the ability to exercise significant influence over the investments.

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Derivative Financial Instruments —As part of risk management and operational strategies, from time to time, we may enter into derivative contracts with various counterparties.

22 unchanged sentences

Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease.

As of March 31, 2025 and December 31, 2024, lease incentives of $ 1.3 million and $ 3.9 million, respectively, are presented net of accumulated amortization of $ 1.1 million and $ 3.6 million, respectively.

As of June 30, 2025 and December 31, 2024, lease incentives of $ 1.3 million and $ 3.9 million, respectively, are presented net of accumulated amortization of $ 1.0 million and $ 3.6 million, respectively.

Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue and are included in rental and other property income in the period the expenses are incurred, with the corresponding expenses included in rental and other property operating expense.

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

For the three months ended March 31, 2025 and 2024, the Company recognized rental income as follows (in thousands):

Three Months Ended March 31,

June 30, 2025 (Unaudited) – (Continued)

For the three and six months ended June 30, 2025 and 2024, the Company recognized rental income as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Rental and other property income

2 unchanged sentences

Variable lease payments (2)

1,832 2,911 4,683 5,336

Rental and other property income $ 15,779 $ 19,249 $ 32,999 $ 38,022

9 unchanged sentences

The Company does not use a general reserve approach.

As of March 31, 2025 and December 31, 2024, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $ 549,000 and $ 640,000 , respectively.

As of June 30, 2025 and December 31, 2024, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $ 592,000 and $ 640,000 , respectively.

Revenue from lending activities

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

At inception of a contract with a customer for hotel goods and services, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate.

1 unchanged sentence

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 17 (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Hotel properties

9 unchanged sentences

The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed.

No such amounts were recognized for tenant recoveries outside of the lease agreements for each of the three months ended March 31, 2025 and 2024.

As of March 31, 2025, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements.

No such amounts were recognized for tenant recoveries outside of the lease agreements for each of the three and six months ended June 30, 2025 and 2024.

As of June 30, 2025, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements.

Loans Receivable —The Company’s loans receivable are carried at their unamortized principal balance less

4 unchanged sentences

Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by the Company is recorded at fair value and a discount is recorded as a reduction in basis of the retained portion of the loan.

Unamortized retained loan discounts were $ 7.5 million and $ 7.9 million as of March 31, 2025 and December 31, 2024, respectively.

Unamortized retained loan discounts were $ 7.2 million and $ 7.9 million as of June 30, 2025 and December 31, 2024, respectively.

A loan receivable is generally classified as non-accrual (a “Non-Accrual Loan”) if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and/or interest is in doubt.

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost.

As of March 31, 2025 and December 31, 2024, the Company had a total CECL of $ 2.1 million and $ 2.0 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company had a total CECL of $ 2.5 million and $ 2.0 million, respectively.

The Company estimates CECL for its loans primarily using its historical experience with loan write-offs, historical charge-offs from third-party firms, and the weighted average remaining maturity method, which has been identified as an acceptable method for estimating CECL reserves in the Financial Accounting Standards Board (“FASB”) Staff Q&A Topic 326, No.

24 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

in the related offering.

5 unchanged sentences

As such, the Company’s current and corresponding prior period total deferred costs, net in the accompanying consolidated balance sheets relate only to the revolving loan portion of the credit facilities.

As of March 31, 2025 and December 31, 2024, deferred rent receivable and charges consist of the following (in thousands):

March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, deferred rent receivable and charges consist of the following (in thousands):

June 30, 2025 December 31, 2024

Deferred rent receivable $ 12,066 $ 12,931

13 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

expenses during the reporting period.

15 unchanged sentences

2023-07 has not impacted the Company’s financial statements but has resulted in incremental disclosures, which are included within Note 17 — Segment Disclosure.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, (“ASU 2023-09”).

ASU 2023-09 enhances annual income tax disclosures by requiring additional disaggregation of information in the effective tax rate reconciliation and regarding income taxes paid.

ASU 2023-09 is effective for annual periods beginning after December 15, 2025, and interim periods within fiscal years beginning after December 15, 2026, and early adoption is permitted.

The Company is currently evaluating whether the adoption of ASU 2023-09 will have a material impact on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU No.

1 unchanged sentence

ASU 2024-03 requires that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.

ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, and early adoption is permitted.

ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, and early adoption is permitted.

The Company is currently evaluating whether the adoption of ASU 2024-03 will have a material impact on its consolidated financial statements and disclosures.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

INVESTMENTS IN REAL ESTATE

Investments in real estate consist of the following (in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Land $ 175,682 $ 175,682

7 unchanged sentences

Net investments in real estate $ 704,775 $ 709,194

For the three months ended March 31, 2025 and 2024, the Company recorded depreciation expense of $ 5.9 million and $ 5.8 million, respectively.

2025 and 2024 Transactions and Assets Held for Sale —There were no acquisitions or dispositions during the three months ended March 31, 2025 and 2024.

For both the three months ended June 30, 2025 and 2024, the Company recorded depreciation expense of $ 5.8 million.

For both the six months ended June 30, 2025 and 2024, the Company recorded depreciation expense of $ 11.7 million.

Impairment —The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate that the carrying value of certain of its investments in real estate may not be recoverable.

See Note 2 for a discussion of the Company’s accounting policies regarding impairment of investments in real estate.

During both the three and six months ended June 30, 2025, one office property in Austin, Texas, with a carrying value of $ 2.1 million, was deemed to be impaired and its carrying value was reduced to an estimated fair value of $ 1.9 million, resulting in impairment charges of $ 221,000 , which were recorded in the consolidated statement of operations.

The Company recorded no impairment charges during the three and six months ended June 30, 2024.

See Note 2 for a discussion of the Company’s policies regarding impairment of real estate assets.

See Note 13 for a further discussion regarding these impairment charges during the three and six months ended June 30, 2025.

2025 and 2024 Transactions and Assets Held for Sale —There were no acquisitions or dispositions during the six months ended June 30, 2025 and 2024.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

INVESTMENT IN UNCONSOLIDATED ENTITIES

2 unchanged sentences

Ownership Interest Carrying Value

Joint Venture Asset Type Location Acquisition Date March 31, 2025 March 31, 2025 December 31, 2024

Joint Venture Asset Type Location Acquisition Date June 30, 2025 June 30, 2025 December 31, 2024

1910 Sunset Boulevard (1)

19 unchanged sentences

The site is being evaluated for different development options, including creative office or other commercial space.

As of March 31, 2025, this property was in pre-development phase and the Company has not finalized the formal development plan for the property.

As of June 30, 2025, this property was in pre-development phase and the Company has not finalized the formal development plan for the property.

1910 Sunset Boulevard — In February 2022, the Company invested in an Unconsolidated Joint Venture (the “1910 Sunset JV”) with a CIM-managed separate account (the “1910 Sunset JV Partner) to purchase an office property located at 1910 Sunset Boulevard in Los Angeles, California along with an adjacent vacant land parcel located at 1915 Park Avenue, for a gross purchase price of approximately $ 51.0 million, of which the Company initially contributed approximately $ 22.4 million and the 1910 Sunset JV Partner initially contributed the remaining balance.

3 unchanged sentences

The 1915 Park Project is expected to be completed by the third quarter of 2025.

The 1910 Sunset JV plans to finance the project through a combination of cash from operations at its office property, additional equity contributions from existing investors, and proceeds from a mortgage loan from a third-party lender (which has a balance of $ 2.7 million as of March 31, 2025 and total borrowing availability of $ 9.4 million).

As of March 31, 2025, the 1910 Sunset JV had incurred total costs of $ 9.8 million in connection with the 1915 Park Project.

The 1910 Sunset JV plans to finance the project through a combination of cash from operations at its office property, additional equity contributions from existing investors, and proceeds from a mortgage loan from a third-party lender (which has a balance of $ 5.1 million as of June 30, 2025 and total borrowing availability of $ 9.4 million).

As of June 30, 2025, the 1910 Sunset JV had incurred total costs of $ 12.4 million in connection with the 1915 Park Project.

4750 Wilshire Boulevard — In February 2023, three co-investors (the “4750 Wilshire JV Partners”) acquired an 80 % interest in a property owned by a subsidiary of the Company located at 4750 Wilshire Boulevard in Los Angeles, California (“4750 Wilshire”) for a gross sales price of $ 34.4 million (excluding transaction costs).

3 unchanged sentences

The 4750 Wilshire JV has commenced leasing of the multifamily units.

The 4750 Wilshire Project which was financed by a combination of equity contributions from the 4750 Wilshire JV Partners and a third-party construction loan, secured by 4750 Wilshire, which closed in March 2023 and had a balance of $ 37.4 million as of March 31, 2025 (with total borrowing availability of $ 38.5 million) (the “4750 Wilshire Construction Loan”).

The 4750 Wilshire Project which was financed by a combination of equity contributions from the 4750 Wilshire JV Partners and a third-party construction loan, secured by 4750 Wilshire, which closed in March 2023 and had a balance of $ 37.8 million as of June 30, 2025 (with total borrowing availability of $ 38.5 million) (the “4750 Wilshire Construction Loan”).

The Company provided a limited guarantee to the lender under the

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

4750 Wilshire Construction Loan.

As of March 31, 2025, total costs of $ 28.0 million had been incurred by the 4750 Wilshire JV in connection with the 4750 Wilshire Project.

As of June 30, 2025, total costs of $ 28.4 million had been incurred by the 4750 Wilshire JV in connection with the 4750 Wilshire Project.

Pursuant to the co-investment agreement, the 4750 Wilshire JV pays an ongoing management fee to the Company.

3 unchanged sentences

In October 2024, the 1902 Park JV admitted a new third-party co-investor and used part of the net capital contribution of such third party co-investor to satisfy the 1902 Park Mortgage Loan in full.

The remaining contribution was used to make a distribution of $ 1.0 million to each of the Company and the 1902 Park JV Partner.

Subsequent to this contribution, the Company’s ownership share of the 1902 Park JV was 25.5 %.

In addition, the Company and the 1902 Park JV Partner will be receiving an ongoing fee from such third party co-investor in connection with its co-investment in 1902 Park JV.

In addition, the Company and the 1902 Park JV Partner will be receiving an ongoing management fee from such third party co-investor in connection with its co-investment in 1902 Park JV.

1015 N Mansfield Avenue — In October, 2023, the Company and a co-investor affiliated with CIM Group (the “1015 N Mansfield JV Partner”) acquired from an unrelated third party a 100 % fee-simple interest in a plot of land located in the Sycamore media district of Los Angeles, California for a gross purchase price of $ 18.0 million (excluding transaction costs) (the “1015 N Mansfield JV”).

2 unchanged sentences

The Company owns 28.8 % of the 1015 N Mansfield JV.

The Company recorded a loss of $ 1.2 million and $ 326,000 related to its investment in the Unconsolidated Joint Ventures during the three months ended March 31, 2025 and 2024, respectively.

The Company recorded a loss of $ 437,000 and $ 1.6 million related to its investment in the Unconsolidated Joint Ventures during the three and six months ended June 30, 2025, respectively, and income of $ 1.1 million and $ 797,000 during the three and six months ended June 30, 2024, respectively.

LOANS RECEIVABLE

Loans receivable consist of the following (in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

SBA 7(a) loans receivable, subject to credit risk $ 20,174 $ 19,306

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Current Expected Credit Losses

CECL reflects the Company’s current estimate of potential credit losses related to loans receivable included in the Company’s consolidated balance sheets as of March 31, 2025 pursuant to ASU 2016-13 as implemented effective January 1, 2023.

CECL reflects the Company’s current estimate of potential credit losses related to loans receivable included in the Company’s consolidated balance sheets as of June 30, 2025 pursuant to ASU 2016-13 as implemented effective January 1, 2023.

Refer to Note 2 for further discussion of CECL.

The following table presents the activity in the Company’s CECL for the three months ended March 31, 2025 and March 31, 2024 (dollar amounts in thousands):

The following table presents the activity in the Company’s CECL for the six months ended June 30, 2025 and June 30, 2024 (dollar amounts in thousands):

Loans Receivable

2 unchanged sentences

Current expected credit losses as of March 31, 2025

Net adjustment to reserve for expected credit losses 380

Current expected credit losses as of June 30, 2025 $ 2,451

Current expected credit losses as of December 31, 2023

1 unchanged sentence

Current expected credit losses as of March 31, 2024

Net adjustment to reserve for expected credit losses ( 37 )

Current expected credit losses as of June 30, 2024 $ 1,607

The net adjustments to the reserve for expected credit losses are recognized through net income on the Company’s consolidated statements of operations.

During the three months ended March 31, 2025, the Company recorded an increase of $ 39,000 in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations.

During the three months ended March 31, 2024, the Company recorded a decrease of $ 36,000 in its CECL related to its loan receivable, which is recorded in general and administrative expenses in the consolidated statement of operations.

During the three and six months ended June 30, 2025, the Company recorded an increase of $ 380,000 and $ 419,000 , respectively, in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations.

During the three and six months ended June 30, 2024, the Company recorded a decrease of $ 36,000 and $ 73,000 , respectively, in its CECL related to its loan receivable, which is recorded in general and administrative expenses in the consolidated statement of operations.

As further described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies, the Company evaluates its loans receivable portfolio on a quarterly basis.

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

The Company’s primary credit quality indicator is its risk ratings, which are further discussed above.

The following table presents the net book value of the Company’s loans receivable portfolio as of March 31, 2025 by year of origination, loan type and risk rating (dollar amounts in thousands):

The following table presents the net book value of the Company’s loans receivable portfolio as of June 30, 2025 by year of origination, loan type and risk rating (dollar amounts in thousands):

Amortized Cost of Loans Receivable by Year of Origination

As of March 31, 2025

As of June 30, 2025

Number of Loans 2025 2024 2023 2022 2021 Prior Total

9 unchanged sentences

Current expected credit losses

Held for sale guaranteed portion

Total loans receivable, net $ 51,094

3 unchanged sentences

The Company has determined there is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

As of March 31, 2025 and December 31, 2024, 99.4 % and 99.5 %, respectively, of the Company’s loans subject to credit risk were concentrated in the hospitality industry.

As of March 31, 2025 and December 31, 2024, 95.2 % and 92.3 %, respectively, of the Company’s loans subject to credit risk were current.

As of June 30, 2025 and December 31, 2024, 99.4 % and 99.5 %, respectively, of the Company’s loans subject to credit risk were concentrated in the hospitality industry.

As of June 30, 2025 and December 31, 2024, 94.9 % and 92.3 %, respectively, of the Company’s loans subject to credit risk were current.

The Company classifies loans with negative characteristics in substandard categories ranging from special mention to doubtful.

As of March 31, 2025 and December 31, 2024, $ 3.9 million and $ 4.8 million, respectively, of loans subject to credit risk were classified in substandard categories.

As of June 30, 2025 and December 31, 2024, $ 4.7 million and $ 4.8 million, respectively, of loans subject to credit risk were classified in substandard categories.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

OTHER INTANGIBLE ASSETS AND LIABILITIES

A schedule of the Company’s intangible assets and liabilities and related accumulated amortization and accretion as of March 31, 2025 and December 31, 2024 is as follows (in thousands):

March 31, 2025 December 31, 2024

A schedule of the Company’s intangible assets and liabilities and related accumulated amortization and accretion as of June 30, 2025 and December 31, 2024 is as follows (in thousands):

June 30, 2025 December 31, 2024

Intangible assets:

5 unchanged sentences

Amortization of the acquired below-market leases is recorded as an increase to rental and other property income in the accompanying consolidated statements of operations.

During the three months ended March 31, 2025 and 2024, the Company recognized amortization related to its intangible assets and liabilities as follows (in thousands):

Three Months Ended March 31,

During the three and six months ended June 30, 2025 and 2024, the Company recognized amortization related to its intangible assets and liabilities as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Acquired above-market lease amortization $ — $ 1 $ 1 $ 3

Acquired in-place lease amortization $ 30 $ 93 $ 109 $ 187

A schedule of future amortization and accretion of acquired intangible assets and liabilities as of March 31, 2025, is as follows (in thousands):

A schedule of future amortization and accretion of acquired intangible assets and liabilities as of June 30, 2025, is as follows (in thousands):

Years Ending December 31, Acquired

2025 (Nine months ended December 31, 2025) $ 91

2025 (Six months ending December 31, 2025) $ 61

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following table summarizes the debt balances as of March 31, 2025 and December 31, 2024, and the debt activity for the three months ended March 31, 2025 (in thousands):

During the Three Months Ended March 31, 2025

Balances as of December 31, 2024 Debt Issuances & Assumptions Repayments Accretion & (Amortization) Balances as of March 31, 2025

June 30, 2025 (Unaudited) – (Continued)

The following table summarizes the debt balances as of June 30, 2025 and December 31, 2024, and the debt activity for the six months ended June 30, 2025 (in thousands):

During the Six Months Ended June 30, 2025

Balances as of December 31, 2024 Debt Issuances & Assumptions Repayments (1) Accretion & (Amortization) Balances as of June 30, 2025

Mortgages Payable:

Fixed rate mortgages payable $ 269,100 $ — $ — $ — $ 269,100

Variable rate mortgage payable 171,346 9,013 — — 180,359

Variable rate mortgages payable 171,346 42,065 ( 100 ) — 213,311

440,446 42,065 ( 100 ) — 482,411

5 unchanged sentences

Total Secured Borrowings — Government Guaranteed Loans 1,383 — ( 26 ) ( 1 ) 1,356

Lending division revolving credit facility — 8,250 — — 8,250

2022 credit facility revolver 1,367 — ( 1,367 ) — —

6 unchanged sentences

Total Debt, Net $ 505,732 $ 48,435 $ ( 20,020 ) $ 1,458 $ 535,605

(1) The write-off of $ 59,000 of deferred debt issuance costs associated with the 2022 Credit Facility Term Loan (as defined below) resulting from the early extinguishment of debt incurred during the quarter ended June 30, 2025 is reflected here within deferred debt issuance costs — other.

See further discussion under 2022 Credit Facility.

Fixed Rate Mortgages Payable —The Company’s fixed rate mortgages payable are non-recourse and are secured by, among other things, first priority deeds of trust, security agreements or other similar security instruments on the fee simple interests in properties underlying such mortgages and assignments of rents receivable.

As of March 31, 2025, the Company’s fixed rate mortgages payable had fixed interest rates of 4.14 %, 6.25 % and 7.41 % per annum, with payments of interest only and initial maturity dates of July 1, 2026, June 7, 2025 and January 11, 2030, respectively.

In regards to the mortgage payable maturing on June 7, 2025, the Company has a one-year extension option exercisable at its discretion (which the Company intends to exercise).

Variable Rate Mortgage Payable —The Company’s variable rate mortgages payable are non-recourse and are secured by, among other things, first priority deeds of trust, security agreements or other similar security instruments on the Company’s fee simple and leasehold interests in its hotel asset and adjacent parking garage and by a deed of trust on and assignment of rents receivable from a multifamily property.

As of March 31, 2025, the Company’s variable rate mortgages payable had a variable interest rate of SOFR plus 3.36 %, SOFR plus 4.35 % and SOFR plus 3.00 %, with monthly payments of interest only, with an initial maturity date of July 7, 2025, January 1, 2027 and February 14, 2027.

With regards to the mortgage payable maturing on July 7, 2025 (the “Channel House Mortgage”), the Company has an extension option subject to certain conditions.

The Company has been in discussions with the lender under the Channel House Mortgage, which is non-recourse and has no cross-collateral provisions and is secured by Channel House (a multifamily property in Oakland, California), to

As of June 30, 2025, the Company’s fixed rate mortgages payable had fixed interest rates of 4.14 %, 6.25 % and 7.41 % per annum, with payments of interest only and initial maturity dates of June 7, 2026, July 1, 2026, and January 11, 2030, respectively.

In regards to the mortgage payable with a balance of $ 67.0 million as of June 30, 2025 maturing on June 7, 2026 (the “1150 Clay Mortgage”), the Company executed the final one-year extension option under the mortgage in June 2025.

The Company intends to work with the lender in order to refinance the 1150 Clay Mortgage beyond its stated maturity date of June 7, 2026.

Although the Company believes it is likely it will be able to refinance the 1150 Clay Mortgage prior to June 7, 2026, there can be no assurance that such refinancing will occur.

If the Company and the lender under the 1150 Clay Mortgage cannot agree on an extension of the mortgage and the Company fails to repay the loan in full upon its contractual maturity date, such failure would constitute an event of default under the mortgage and would allow the lender to, among other remedies, take possession of the property.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

restructure the terms of the mortgage, as the Company does not expect the property will meet certain conditions that are required in order for the Company to exercise the option to extend the Channel House Mortgage beyond July 7, 2025.

There can be no assurance that such restructuring will occur.

If the Company and the lender under the Channel House Mortgage cannot agree on a modification of the mortgage and the Company fails to exercise its extension option, such failure would constitute an event of default under the mortgage and would allow the lender to, among other remedies, declare principal and interest under the mortgage loan to be immediately due and payable.

June 30, 2025 (Unaudited) – (Continued)

Variable Rate Mortgages Payable —The Company’s variable rate mortgages payable are non-recourse and are secured by, among other things, first priority deeds of trust, security agreements or other similar security instruments on the Company’s fee simple and leasehold interests in its hotel asset and adjacent parking garage and by a deed of trust on and assignment of rents receivable from a multifamily property.

As of June 30, 2025, the Company’s variable rate mortgages payable had a variable interest rate of SOFR plus 3.36 %, SOFR plus 4.35 %, SOFR plus 3.00 % and SOFR plus 2.95 %, with an initial maturity date of July 7, 2025, January 1, 2027, February 14, 2027 and April 3, 2028.

The mortgages with initial maturity dates of July 7, 2025, January 1, 2027, and February 14, 2027 have monthly payments of interest only, while the mortgage with an initial maturity date of April 3, 2028 has monthly payments of interest plus $ 50,000 of principal.

With regards to the mortgage payable with a balance of $ 87.0 million as of June 30, 2025 maturing on July 7, 2025 (the “Channel House Mortgage”), on August 4, 2025 the Company reached an agreement with the lender to extend the maturity date through January 31, 2027 (the “Channel House Mortgage Extension”).

In connection with the Channel House Mortgage Extension, the Company made a repayment of $ 6.0 million under the Channel House Mortgage.

Secured Borrowings — Government Guaranteed Loans —Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral .

These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full.

As of March 31, 2025, the Company’s secured borrowings-government guaranteed loans included $ 349,000 of loans sold for a premium and excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 8.21 % at March 31, 2025, and $ 1.0 million of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.85 % at March 31, 2025.

2022 Credit Facility —In December 2022, the Company refinanced its 2018 credit facility and replaced it with a new 2022 credit facility (the “2022 Credit Facility”), entered into with a bank syndicate, that included a $ 56.2 million term loan (the “2022 Credit Facility Term Loan”) as well as a revolver that originally allowed the Company to borrow up to $ 150.0 million (the “2022 Credit Facility Revolver”), both of which are collectively subject to a borrowing base calculation.

As of June 30, 2025, the Company’s secured borrowings-government guaranteed loans included $ 344,000 of loans sold for a premium and excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 8.21 % at June 30, 2025, and $ 991,000 of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.85 % at June 30, 2025.

Lending Division Revolving Credit Facility— In June 2025, a subsidiary of the Company, as borrower, entered into an agreement (the “Lending Division Revolving Credit Facility”) with a bank that included a $ 20.0 million revolving credit facility secured by the unguaranteed portion of certain of such subsidiary’s SBA 7(a) loans receivable and other assets of such subsidiary, subject to a borrowing base calculation, and fully guaranteed by the Company.

Loans included in the borrowing base calculation may not be included for more than 12 calendar months unless certain financial ratios are met and in no case can loans be included for more than 18 months.

The Lending Division Revolving Credit Facility bears interest at (i) the base rate plus 2.00 % or (ii) SOFR plus 3.00 %, at the borrower’s election, and has an initial maturity date of June 13, 2027, with two one-year extension options.

As of June 30, 2025, the effective interest rate for the Lending Division Revolving Credit Facility was 7.38 % and, pursuant to the borrowing base calculation, there was no availability for additional borrowings under the Lending Division Revolving Credit Facility.

In connection with the Company’s guaranty of the Lending Division Revolving Credit Facility (the “Parent Guaranty”), the Company is subject to certain financial covenants, including maintenance of (i) a consolidated fixed charge coverage ratio of at least 1.05 to 1.00, (ii) a minimum net worth of $ 200.0 million, (iii) a total leverage ratio no greater than 2.50 to 1.00 and (iv) $ 10.0 million of liquidity.

If the Company fails to comply with the financial covenants set forth in the Parent Guaranty, the lender under the Lending Division Revolving Credit Facility has the right to require the Company to post cash collateral for the benefit of the lender in an amount equal to 105 % of the outstanding principal balance under the facility plus all accrued and unpaid interest under such facility.

2022 Credit Facility —In December 2022, the Company refinanced its 2018 credit facility and replaced it with a new 2022 credit facility (the “2022 Credit Facility”), entered into with a bank syndicate, that included a $ 56.2 million term loan (the “2022 Credit Facility Term Loan”) as well as a revolver that originally allowed the Company to borrow up to $ 150.0 million (the “2022 Credit Facility Revolver”), both of which were collectively subject to a borrowing base calculation.

At the time the 2022 Credit Facility was entered into, it was collateralized by six of the Company’s office properties, as well as the Company’s hotel property and adjacent parking garage (the “Hotel Properties”).

The 2022 Credit Facility bears interest at (A) the base rate plus 1.50 % or (B) SOFR plus 2.60 %.

As of March 31, 2025, the variable interest rate was 8.42 %.

The 2022 Credit Facility Revolver is also subject to an unused commitment fee of 0.15 % or 0.25 % depending on the amount of aggregate unused commitments.

The 2022 Credit Facility is guaranteed by the Company and the Company is subject to certain financial maintenance covenants.

The 2022 Credit Facility originally had a maturity date in December 2025 and provided for two one-year extension options.

In December 2024, using proceeds from the closing of a variable rate mortgage on the Hotel Properties and a fixed rate mortgage on three of the Company’s office properties (collectively, “the Refinancings”), the Company repaid $ 111.7 million on the 2022 Credit Facility Revolver and $ 42.6 million on the 2022 Credit Facility Term Loan.

Following the completion of the Refinancings, the 2022 Credit Facility was secured by three of the Company’s office properties.

The 2022 Credit Facility is not cross-collateralized by any other of the Company’s assets.

In connection with the Refinancings, the Company recorded a loss on early extinguishment of debt during the year ended December 31, 2024 of $ 1.4 million related to the write-off of deferred debt origination costs of $ 1.1 million associated with the 2022 Credit Facility Revolver and $ 275,000 associated with the 2022 Credit Facility Term Loan.

As of both March 31, 2025 and December 31, 2024, there was no amount available for future borrowings.

At the end of the first three quarters of 2024, the Company was not in compliance with a financial covenant under the 2022 Credit Facility.

Further, as of December 31, 2024 and March 31, 2025, the Company was not in compliance with two covenants under the 2022 Credit Facility.

Such non-compliance events during 2024 constituted events of default under the 2022 Credit Facility.

On May 14, 2024, lenders under the 2022 Credit Facility and the Company entered into an agreement (the “First Modification Agreement”) pursuant to which the lenders waived such event of default with respect to the test period ending March 31, 2024.

On August 7, 2024, lenders under the 2022 Credit Facility and the Company entered into an agreement (the “Second Modification Agreement”) pursuant to which the lenders waived such event of default with respect to the test period ending June 30, 2024.

Simultaneously with the execution of the Second Modification Agreement, the Company made a $ 4.0 million repayment under the 2022 Credit Facility.

On October 24, 2024, lenders under the 2022 Credit Facility and the Company entered into an agreement (the “Third Modification Agreement”) pursuant to which the lenders waived such event of default with respect to the test period ending September 30, 2024, pursuant to which the aggregate commitments under the 2022 Credit Facility were reduced from $ 206.2 million to $ 169.3 million, and pursuant to which the lenders under the 2022 Credit facility agreed to release the Hotel Properties in order to facilitate the refinancing of such properties.

On December 24, 2024, in connection with the Refinancings, the lenders under the 2022 Credit Facility and the Company entered into an agreement (the “Fourth Modification Agreement”) pursuant to which the lenders agreed to release assets relating to three of the Company’s office buildings located in Los Angeles, California, in order to facilitate a refinancing of such properties, subject to a minimum prepayment of the 2022 Credit Facility in connection with such refinancing.

In addition, the Fourth Modification Agreement changed the maturity date of the facility to January 31, 2025, subject to a 2-month extension option.

Such extension option was executed on January 31, 2025, pursuant to a modification agreement to the 2022 Credit Facility (the “Fifth Modification Agreement”).

On March 27, 2025, the lenders under the 2022 Credit Facility and the Company entered into a modification

In December 2024, using proceeds from the closing of a variable rate mortgage on the Hotel Properties and a fixed rate mortgage on three of the Company’s office properties, the Company repaid $ 111.7 million on the 2022 Credit Facility Revolver and $ 42.6 million on the 2022 Credit Facility Term Loan.

On April 3, 2025, the Company completed the refinancing of an office property in Austin, Texas and used a portion of the proceeds from such refinancing to repay the 2022 Credit Facility in full and, in connection with such repayment, the 2022 Credit Facility was terminated.

In connection with termination of the 2022 Credit Facility, the Company recorded a loss on early extinguishment of debt during the quarter ended June 30, 2025 of $ 88,000 related to the write-off of deferred debt

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

agreement (the “Sixth Modification Agreement”), pursuant to which the credit facility’s maturity date was extended from March 31, 2025 to May 31, 2025.

On April 3, 2025 the Company completed the refinancing of an office property in Austin, Texas (see further discussion in Subsequent Events) (the “Austin Refinancing”).

The Company used a portion of the proceeds from the Austin Refinancing to repay the 2022 Credit Facility in full and, in connection with such repayment, the 2022 Credit Facility was terminated.

June 30, 2025 (Unaudited) – (Continued)

origination costs of $ 29,000 associated with the 2022 Credit Facility Revolver and $ 59,000 associated with the 2022 Credit Facility Term Loan.

Junior Subordinated Notes —The Company has junior subordinated notes with a variable interest rate which resets quarterly based on the three-month SOFR plus 3.51 %, with quarterly interest only payments.

5 unchanged sentences

The SBA 7(a) loan-backed notes bear interest at a per annum rate equal to the lesser of (i) 30-day average compounded SOFR plus 2.90 % and (ii) prime rate minus 0.35 %.

As of March 31, 2025, the variable interest rate was 7.15 %.

As of June 30, 2025, the variable interest rate was 7.15 %.

The Company reflects the SBA 7(a) loans receivable as assets on its consolidated balance sheet and the SBA 7(a) loan-backed notes as debt on its consolidated balance sheet.

The restricted cash on the Company’s consolidated balance sheets included funds related to the Company’s SBA 7(a) loan-backed notes was $ 3.3 million as of March 31, 2025.

The restricted cash on the Company’s consolidated balance sheets included funds related to the Company’s SBA 7(a) loan-backed notes was $ 2.8 million as of June 30, 2025.

Other —Deferred debt issuance costs, which represent legal and third-party fees incurred in connection with the Company’s borrowing activities, are capitalized and amortized to interest expense on a straight-line or effective interest method over the life of the related loan.

Deferred debt issuance costs are presented net of accumulated amortization and are a reduction to total debt.

As of March 31, 2025 and December 31, 2024, accrued interest and unused commitment fees payable of $ 2.4 million and $ 1.1 million, respectively, were included in accounts payable and accrued expenses.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Future principal payments on the Company’s debt (face value) as of March 31, 2025 are as follows (in thousands):

As of June 30, 2025 and December 31, 2024, accrued interest and unused commitment fees payable of $ 2.4 million and $ 1.1 million, respectively, were included in accounts payable and accrued expenses.

Future principal payments on the Company’s debt (face value) as of June 30, 2025 are as follows (in thousands):

Years Ending December 31, Mortgage Payable (1)

Secured Borrowings Principal (2)

2022 Credit Facility (3)

Other (2) (4)

2025 (Nine months ending December 31, 2025) $ 154,000 $ 70 $ 15,000 $ 5,855 $ 174,925

Lending Division Revolving Credit Facility Other (2) (3)

2025 (Six months ending December 31, 2025) $ 87,300 $ 49 $ — $ 3,496 $ 90,845

2026 164,700 101 — 8,504 173,305

5 unchanged sentences

______________________

(1) With respect to the $ 154.0 million of mortgages payable maturing in 2025, each such mortgage payable has a one-year extension option.

The extension option for the fixed rate mortgage is at the Company’s discretion and the Company intends to execute such option.

In regards to the Channel House Mortgage, see the discussion under Variable Rate Mortgages Payable.

(1) In regards to the $ 87.0 million Channel House Mortgage, which matures in 2025, see the discussion under Variable Rate Mortgages Payable.

In regards to the $ 67.0 million 1150 Clay Mortgage, which matures on June 7, 2026, see the discussion under Fixed Rate Mortgages Payable.

(2) Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans.

1 unchanged sentence

The Company’s estimate will differ from actual amounts to the extent the Company experiences prepayments and/or loan liquidations or charge-offs.

(3) The 2022 Credit Facility paid off and terminated in April 2025.

(3) Represents the junior subordinated notes and SBA 7(a) loan-backed notes.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

In the ordinary course of business, the Company may use certain types of derivative instruments for the purpose of managing or hedging its interest rate risk.

The following table summarizes the terms of the Company’s interest rate cap agreements as of March 31, 2025 (dollar amounts in thousands):

The following table summarizes the terms of the Company’s interest rate cap agreements as of June 30, 2025 (dollar amounts in thousands):

Outstanding Notional Fair Value of Assets

Balance Sheet Amount as of Strike Effective Maturity as of

Location March 31, 2025 Rates (1)

Dates Dates March 31, 2025

Location June 30, 2025 Rates (1)

Dates Dates June 30, 2025

Interest Rate Caps Other assets $ 176,830

9 unchanged sentences

The change in fair value of the derivative instrument that is not designated as a hedge is recorded directly to earnings as interest expense on the accompanying consolidated statements of operations.

During the three months ended March 31, 2025 and 2024, the Company recorded an unrealized loss of $ 78,000 and gain of $ 55,000 , respectively, which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

During the three and six months ended June 30, 2025, the Company recorded an unrealized loss of $ 21,000 and $ 99,000 , respectively, which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

During the three and six months ended June 30, 2024, the Company recorded an unrealized loss of $ 73,000 and $ 18,000 , respectively, which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

STOCK-BASED COMPENSATION PLANS

7 unchanged sentences

(1) Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period, and generally vests based on one year of continuous service.

The Company recorded compensation expense related to these restricted shares of Common Stock in the amount of $ 55,000 and $ 55,000 for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, there was $ 73,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized ratably over the remaining vesting period.

The Company recorded compensation expense related to these restricted shares of Common Stock in the amount of $ 55,000 for both the three months ended June 30, 2025 and 2024, and $ 110,000 for both the six months ended June 30, 2025 and 2024.

As of June 30, 2025, there was $ 18,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized ratably over the remaining vesting period.

EARNINGS PER SHARE ("EPS")

The computation of basic EPS are based on the Company’s weighted average shares outstanding.

No shares of Series D Preferred Stock, Series A Preferred Stock, or Series A1 Preferred Stock outstanding as of March 31, 2025 or 2024 were included in the computation of diluted EPS because they had no dilutive effect.

Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the three months ended March 31, 2025 and 2024 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 12).

No shares of Series D Preferred Stock, Series A Preferred Stock, or Series A1 Preferred Stock outstanding as of June 30, 2025 or 2024 were

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

included in the computation of diluted EPS because they had no dilutive effect.

Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the three and six months ended June 30, 2025 and 2024 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 12).

EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods.

In addition, EPS is calculated independently for each component and may not be additive due to rounding.

The following table reconciles the numerator and denominator used in computing the Company’s basic and diluted per-share amounts for net loss attributable to common stockholders for the three months ended March 31, 2025 and 2024 (in thousands, except per share amounts):

Three Months Ended March 31,

The following table reconciles the numerator and denominator used in computing the Company’s basic and diluted per-share amounts for net loss attributable to common stockholders for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net loss attributable to common stockholders $ ( 14,279 ) $ ( 9,667 ) $ ( 26,177 ) $ ( 21,962 )

7 unchanged sentences

Diluted $ ( 18.94 ) $ ( 98.64 ) $ ( 39.36 ) $ ( 224.10 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

REDEEMABLE PREFERRED STOCK

The table below provides information regarding the issuances, reclassifications and redemptions of each class of the Company’s preferred stock in permanent equity during the three months ended March 31, 2025 and 2024 (dollar amounts in thousands):

The table below provides information regarding the issuances, reclassifications and redemptions of each class of the Company’s preferred stock in permanent equity during the three and six months ended June 30, 2025 and 2024 (dollar amounts in thousands):

Preferred Stock

6 unchanged sentences

Balances, March 31, 2024 11,208,176 $ 277,586 7,042,333 $ 176,006 48,447 $ 1,190 18,298,956 $ 454,782

Redemption of Series A1 Preferred Stock ( 32,002 ) ( 791 ) — — — — ( 32,002 ) ( 791 )

Redemption of Series A Preferred Stock — — ( 287,474 ) ( 7,162 ) — — ( 287,474 ) ( 7,162 )

Balances, June 30, 2024 11,176,174 $ 276,795 6,754,859 $ 168,844 48,447 $ 1,190 17,979,480 $ 446,829

Balances, December 31, 2024 8,372,689 $ 207,387 4,125,363 $ 103,326 48,447 $ 1,190 12,546,499 $ 311,903

4 unchanged sentences

Balances, March 31, 2025 8,178,473 $ 202,574 4,020,892 $ 100,720 48,447 $ 1,190 12,247,812 $ 304,484

Reclassification of Series A1 Preferred Stock to Permanent Equity 364,714 9,491 — — — — 364,714 9,491

Balances, June 30, 2025 8,543,187 $ 212,065 4,020,892 $ 100,720 48,447 $ 1,190 12,612,526 $ 313,975

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Series A1 Preferred Stock —From June 2022 through September 2024, the Company conducted a public offering with respect to shares of its Series A1 Preferred Stock, par value $ 0.001 per share with an initial stated value of $ 25.00 per share, subject to adjustment.

1 unchanged sentence

Shares of Series A1 Preferred Stock issued from June 2022 through May 2024 were recorded in permanent equity at the time of their issuance.

With respect to Series A1 Preferred Stock, for shares issued in June 2024 and thereafter, in the event a holder of Series A1 Preferred Stock requests redemption of such shares and such redemption takes place prior to the first anniversary of the date of original issuance, the Company is required to pay such redemption in cash, As a result, net proceeds from the issuance of shares of Series A1 Preferred Stock from June 2024 and through September 2024 were initially recorded in temporary equity at an amount equal to the gross proceeds allocated to such shares of Series A1 Preferred Stock minus the costs specifically identifiable to the issuance of such shares and the non-issuance specific offering costs allocated to such shares.

With respect to shares of Series A1 Preferred Stock issued from June 2024 through September 2024, on the first anniversary of the issuance of a particular share of such Series A1 Preferred Stock, the Company will reclassify such shares of Series A1 Preferred Stock from temporary equity to permanent equity as the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date.

As of March 31, 2025, the Company had made no such reclassification from temporary equity to permanent equity.

As of March 31, 2025, the Company had issued in registered public offerings 12,040,878 shares of the Series A1 Preferred Stock and received gross proceeds of $ 298.2 million, and additionally had issued 200,000 shares of Series A1 Preferred Stock as payment for services to CIM Service Provider, LLC (the “Administrator”), for which no cash proceeds were received.

As a result, net proceeds from the issuance of shares of Series A1 Preferred Stock from June 2024 and through September 2024 were initially recorded in temporary equity at an amount equal to the gross proceeds allocated to such shares of Series A1 Preferred Stock minus the costs specifically identifiable to the issuance of such shares and the non-issuance specific offering costs allocated to such shares.

With respect to shares of Series A1 Preferred Stock issued from June 2024 through September 2024, on the first anniversary of the issuance of a particular share of such Series A1 Preferred Stock, the Company will reclassify such share of Series A1 Preferred Stock from temporary equity to permanent equity as the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date.

As of June 30, 2025, the Company had reclassified an aggregate of $ 8.3 million in net proceeds from temporary equity to permanent equity.

As of June 30, 2025, the Company had issued in registered public offerings 12,040,878 shares of the Series A1 Preferred Stock and received gross proceeds of $ 298.2 million, and additionally had issued 200,000 shares of Series A1 Preferred Stock as payment for services to CIM Service Provider, LLC (the “Administrator”), for which no cash proceeds were received.

In connection with the issuance of shares of Series A1 Preferred Stock, $ 22.0 million of costs specifically identifiable to the offering of Series A1 Preferred Stock was allocated to the Series A1 Preferred Stock.

Such costs include commissions, dealer manager fees and other offering fees and expenses but do not include non-issuance-specific costs of $ 11.9 million related to the Company’s offering of Series A Preferred Stock, Series A Preferred Warrants, Series A1 Preferred Stock and Series D Preferred Stock.

As of March 31, 2025, the Company had reclassified and allocated $ 5.0 million from deferred charges to Series A1 Preferred Stock as a reduction to the gross proceeds received.

As of June 30, 2025, the Company had reclassified and allocated $ 5.0 million from deferred charges to Series A1 Preferred Stock as a reduction to the gross proceeds received.

Such reclassification was based on the cumulative number of securities issued relative to the maximum number of securities expected to be issued under the offering.

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Such adjustment is considered a deemed dividend for purposes of calculating basic and diluted EPS.

The Company recorded no redeemable preferred stock deemed dividends related to such adjustments during both the three months ended March 31, 2024 and March 31, 2025.

As of March 31, 2025, there were 9,092,063 shares of Series A1 Preferred Stock outstanding and 3,148,815 shares of Series A1 Preferred Stock had been redeemed.

Of the 3,148,815 shares of Series A1 Preferred Stock that have been redeemed,

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

the redemption of 183,081 shares of Series A1 Preferred Stock were paid in cash (all of which were redeemed at the option of the holders).

As of March 31, 2025, the Company had, at its option, redeemed 2,589,606 shares of Series A1 Preferred Stock, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of each redemption date and, in addition, as of March 31, 2025, 376,128 shares redeemed at the option of the holders were paid in shares of Common Stock, including all accrued and unpaid dividends as of the redemption date (collectively, the “Series A1 In-Kind Redemptions”).

The Company recorded no redeemable preferred stock deemed dividends related to such adjustments during the three and six months ended June 30, 2025 and $ 428,000 during the three and six months ended June 30, 2024.

As of June 30, 2025, there were 9,092,063 shares of Series A1 Preferred Stock outstanding and 3,148,815 shares of Series A1 Preferred Stock had been redeemed.

Of the 3,148,815 shares of Series A1 Preferred Stock that have been redeemed, the redemption of 183,081 shares of Series A1 Preferred Stock were paid in cash (all of which were redeemed at the option of the holders).

As of June 30, 2025, the Company had, at its option, redeemed 2,589,606 shares of Series A1 Preferred Stock, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of each redemption date and, in addition, as of June 30, 2025, 376,128 shares redeemed at the option of the holders were paid in shares of Common Stock, including all accrued and unpaid dividends as of the redemption date (collectively, the “Series A1 In-Kind Redemptions”).

The Series A1 In-Kind Redemptions resulted in the aggregate issuance of 288,981 shares of Common Stock.

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In June 2022, the Company concluded the offering of Series A Preferred Stock.

As of March 31, 2025, the Company had issued in registered public offerings 8,251,657 shares of Series A Preferred Stock and 4,603,287 Series A Preferred Warrants and received gross proceeds of $ 205.4 million and $ 761,000 , respectively, and additionally, had issued 568,681 shares of Series A Preferred Stock as payment for services to the Administrator, for which no cash proceeds were received.

In connection with the cumulative issuance of Series A Preferred Stock and Series A Preferred Warrants, $ 17.0 million and $ 142,000 of costs specifically identifiable to the offering of the Series A Preferred Stock and Series A Preferred Warrants, respectively, were allocated to the Series A Preferred Stock and Series A Preferred Warrants, respectively.

As of June 30, 2025, the Company had issued in registered public offerings 8,251,657 shares of Series A Preferred Stock and 4,603,287 Series A Preferred Warrants and received gross proceeds of $ 205.4 million and $ 761,000 , respectively, and additionally, had issued 568,681 shares of Series A Preferred Stock as payment for services to the Administrator, for which no cash proceeds were received.

In connection with the cumulative issuance of Series A Preferred Stock and Series A Preferred

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Warrants, $ 17.0 million and $ 142,000 of costs specifically identifiable to the offering of the Series A Preferred Stock and Series A Preferred Warrants, respectively, were allocated to the Series A Preferred Stock and Series A Preferred Warrants, respectively.

As of March 31, 2025, the Company had reclassified and allocated $ 1.9 million and $ 5,000 from deferred charges to Series A Preferred Stock and Series A Preferred Warrants, respectively, as a reduction to the gross proceeds received.

As of June 30, 2025, the Company had reclassified and allocated $ 1.9 million and $ 5,000 from deferred charges to Series A Preferred Stock and Series A Preferred Warrants, respectively, as a reduction to the gross proceeds received.

Such reclassification was based on the cumulative number of securities issued relative to the maximum number of securities expected to be issued under the offering.

On the first anniversary of the issuance of a particular share of Series A Preferred Stock, the Company reclassifies such share of Series A Preferred Stock from temporary equity to permanent equity as the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date.

As of March 31, 2025, the Company had reclassified an aggregate of $ 199.6 million in net proceeds from temporary equity to permanent equity.

As of March 31, 2025, there were 4,020,892 shares of Series A Preferred Stock outstanding and 4,799,446 shares of Series A Preferred Stock had been redeemed.

As of June 30, 2025, the Company had reclassified an aggregate of $ 199.6 million in net proceeds from temporary equity to permanent equity.

As of June 30, 2025, there were 4,020,892 shares of Series A Preferred Stock outstanding and 4,799,446 shares of Series A Preferred Stock had been redeemed.

Of the 4,799,446 shares of Series A Preferred Stock that have been redeemed, the redemption of 2,330,186 shares of Series A Preferred Stock were paid in cash, 2,313,106 of which were redeemed at the option of the holders and 17,080 of which were redeemed at the option of the Company.

As of March 31, 2025, the Company had, at its option, redeemed 2,150,076 shares of Series A Preferred Stock, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of each redemption date and, in addition, as of March 31, 2025, 319,184 shares redeemed at the option of the holders were paid in shares of Common Stock, including all accrued and unpaid dividends as of the redemption date (collectively, the “Series A In-Kind Redemptions”).

As of June 30, 2025, the Company had, at its option, redeemed 2,150,076 shares of Series A Preferred Stock, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of each redemption date and, in addition, as of June 30, 2025, 319,184 shares redeemed at the option of the holders were paid in shares of Common Stock, including all accrued and unpaid dividends as of the redemption date (collectively, the “Series A In-Kind Redemptions”).

The Series A In-Kind Redemptions resulted in the aggregate issuance of 367,311 shares of Common Stock.

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In June 2022, the Company concluded the offering of its Series D Preferred Stock.

As of March 31, 2025, the Company had issued in registered public offerings 56,857 shares of Series D Preferred Stock and received gross proceeds of $ 1.4 million.

As of June 30, 2025, the Company had issued in registered public offerings 56,857 shares of Series D Preferred Stock and received gross proceeds of $ 1.4 million.

In connection with such issuance, $ 35,000 of costs specifically identifiable to the offering of Series D Preferred Stock were allocated to the Series D Preferred Stock.

As of March 31, 2025, the Company had reclassified and allocated $ 13,000 from deferred charges to Series D

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Preferred Stock as a reduction to the gross proceeds received.

As of June 30, 2025, the Company had reclassified and allocated $ 13,000 from deferred charges to Series D Preferred Stock as a reduction to the gross proceeds received.

Such reclassification was based on the cumulative number of securities issued relative to the maximum number of securities expected to be issued under the offering.

As of March 31, 2025, there were 48,447 shares of Series D Preferred Stock outstanding and 8,410 shares of Series D Preferred Stock had been redeemed (all such redemptions were paid in cash and redeemed at the option of the holders).

As of June 30, 2025, there were 48,447 shares of Series D Preferred Stock outstanding and 8,410 shares of Series D Preferred Stock had been redeemed (all such redemptions were paid in cash and redeemed at the option of the holders).

Dividends —With respect to the payment of dividends or the distribution of amounts upon liquidation, dissolution or winding-up, the Series A1 Preferred Stock, the Series A Preferred Stock and Series D Preferred Stock rank on parity with respect to each other and senior to the Common Stock.

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Holders of Series D Preferred Stock are entitled to receive, if, as and when authorized by the Company’s Board of Directors, and declared by the Company out of legally available funds, cumulative cash dividends on each share of Series D Preferred Stock at an annual rate of 5.65 % of the Series D Preferred Stock Stated Value (i.e., the equivalent of $ 0.35313 per share per quarter) (the “Series D Dividend”).

Dividends on each share of Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock begin accruing on, and are cumulative from, the date of issuance.

During the three months ended March 31, 2025, the Company paid $ 4.5 million, $ 1.4 million, and $ 17,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, respectively.

Additionally, during the three ended March 31, 2025, the Company paid dividends of $ 45,000 and $ 16,000 on the Series A1 Preferred Stock and Series A Preferred Stock, respectively, in shares of Common Stock due to these dividends being accrued and unpaid at the time that such applicable shares of Preferred Stock were redeemed in shares of Common Stock.

During the three months ended March 31, 2024, the Company paid $ 5.1 million, $ 2.5 million, and $ 17,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, respectively.

Dividends on each share of Series A1

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Preferred Stock, Series A Preferred Stock and Series D Preferred Stock begin accruing on, and are cumulative from, the date of issuance.

During the six months ended June 30, 2025, the Company paid $ 8.6 million, $ 2.8 million, and $ 34,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, respectively.

Additionally, during the six months ended June 30, 2025, the Company paid dividends of $ 45,000 and $ 16,000 on the Series A1 Preferred Stock and Series A Preferred Stock, respectively, in shares of Common Stock due to these dividends being accrued and unpaid at the time that such applicable shares of Preferred Stock were redeemed in shares of Common Stock.

During the six months ended June 30, 2024, the Company paid $ 10.6 million, $ 4.9 million, and $ 34,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, respectively.

Redemptions —The Company’s Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock are redeemable at the option of the holder or the Company.

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provided that the redemption price of any shares of Series A1 Preferred Stock issued in June 2024 and thereafter that are redeemed prior to the first anniversary of the date of original issuance of such shares must be paid in cash.

The Company currently plans to continue to satisfy some or all redemption requests submitted by holders of its shares of Preferred Stock in shares of Common Stock during 2025, when legally permitted.

The Company currently plans to continue to satisfy some or all redemption requests submitted by holders of its shares of Preferred Stock in shares of Common Stock during 2025, when legally permitted, which the Company currently expects will be in the third or fourth quarter of 2025.

STOCKHOLDERS’ EQUITY

Holders of the Company’s Common Stock are entitled to receive dividends, if, as and when authorized by the Board of Directors and declared by the Company out of legally available funds.

In determining the Company’s dividend policy, the Board of Directors considers many factors including the amount of cash resources available for dividend distributions, capital

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

spending plans, cash flow, the Company’s financial position, applicable requirements of the MGCL, any applicable contractual restrictions, and future growth in NAV and cash flow per share prospects.

In determining the Company’s dividend policy, the Board of Directors considers many factors including the amount of cash resources available for dividend distributions, capital spending plans, cash flow, the Company’s financial position, applicable requirements of the MGCL, any applicable contractual restrictions, and future growth in NAV and cash flow per share prospects.

Consequently, the dividend rate on a quarterly basis does not necessarily correlate directly to any individual factor.

Cash dividends per share of Common Stock paid in respect of the three months ended March 31, 2025 and 2024 consist of the following ( no cash dividends were declared for the three months ended March 31, 2025):

Cash dividends per share of Common Stock paid in respect of the six months ended June 30, 2024 consisted of the following ( no cash dividends were declared for the six months ended June 30, 2025):

Declaration Date Payment Date Type Cash Dividend Per Share of Common Stock

June 25, 2024 July 22, 2024 Regular Quarterly $ 21.25

March 27, 2024 April 8, 2024 Regular Quarterly $ 21.25

2 unchanged sentences

The Series A Preferred Warrants are exercisable beginning on the first anniversary of the date of their original issuance until and including the fifth anniversary of the date of such issuance.

Proceeds and expenses from the sale of the Series A Preferred Stock and Series A Preferred Warrants were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

As of March 31, 2025, all of the Series A Preferred Warrants had expired.

Proceeds and expenses from the sale of the Series A Preferred Stock and

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Series A Preferred Warrants were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

As of June 30, 2025, all of the Series A Preferred Warrants had expired.

Share Repurchase Program

3 unchanged sentences

The SRP has no termination date and may be suspended or discontinued at any time.

There were no repurchases during the three months ended March 31, 2025.

As of March 31, 2025, the Company had repurchased 2,650 shares of Common Stock for $ 4.7 million.

FAIR VALUE OF FINANCIAL INSTRUMENTS

There were no repurchases during the three and six months ended June 30, 2025.

As of June 30, 2025, the Company had repurchased 2,650 shares of Common Stock for $ 4.7 million.

FAIR VALUE MEASUREMENTS

The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace.

11 unchanged sentences

Accordingly, Level 3 inputs are used to measure fair value.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows.

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The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities.

Debt —The carrying amounts of the Company’s secured borrowings - government guaranteed loans, SBA 7(a) loan-backed notes, 2022 Credit Facility and variable rate mortgage payable approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates.

Debt —The carrying amounts of the Company’s secured borrowings - government guaranteed loans, SBA 7(a) loan-backed notes, Lending Division Revolving Credit Facility and variable rate mortgage payable approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates.

The Company determines the fair value of fixed rate mortgage notes payable and junior subordinated notes by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date.

1 unchanged sentence

Loans Receivable —The Company determines the fair value of loans receivable by performing a present value analysis for the anticipated future cash flows using an appropriate market discount rate taking into consideration the credit risk and using an anticipated prepayment rate.

The value of the government guaranteed portions of loans held for sale is based primarily on the anticipated proceeds to be received upon sale.

The value of the government guaranteed portions of loans held for sale is based

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

primarily on the anticipated proceeds to be received upon sale.

The following summarizes the ranges of discount rates and prepayment rates used to arrive at the estimated fair values of the Company’s loans receivable:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Discount Rate Prepayment Rate Discount Rate Prepayment Rate

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In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties.

Other Financial Instruments —The carrying amounts of the Company’s cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term maturities at March 31, 2025 and December 31, 2024.

Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments.

The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows (dollar amounts in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Amount Estimated

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______________________

(1) The carrying amounts for the mortgages payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The Company’s process for identifying and recording impairment related to investments in real estate is discussed in Note 2.

As discussed in Note 3, during the three months ended June 30, 2025, one property was deemed to be impaired due to a revised cash flow estimate that was less than its carrying value, and its carrying value was reduced to an estimated fair value of $ 1.9 million, resulting in impairment charges of $ 221,000 .

The revised cash flow estimate was a result of a decline in performance and a change in the Company’s intended use for the property in the medium term.

The Company estimated fair values using Level 3 inputs and a market approach, specifically using the sales comparison approach.

The sales comparison approach to valuing investments in real estate uses actual sales prices for comparable assets to determine the investment’s fair value.

The sales prices of the comparable assets are adjusted to reflect their condition relative to the subject property, the time and resources necessary to ready the comparable properties for sale, and the terms of the comparable properties sales.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

(1) The carrying amounts for the mortgages payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts.

June 30, 2025 (Unaudited) – (Continued)

The following table presents the impairment charges by asset class recorded during the three and six months ended June 30, 2025 (in thousands):

Three and Six Months Ended June 30, 2025

Asset class impaired:

Work in progress $ ( 221 )

Total impairment loss $ ( 221 )

RELATED-PARTY TRANSACTIONS

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A base asset management fee (the “Base Fee”) is payable quarterly in arrears to the Operator in an amount equal to an annual rate of 1 % (or 0.25 % per quarter) of the average of the “Net Asset Value Attributable to Common Stockholders” as of the first and last day of the applicable quarter.

Net Asset Value Attributable to Common stockholders is defined as (a) the sum of the Company’s (1) investments in real estate at fair value, (2) cash, (3) loans receivable at fair value and (4) the book value of the other assets of the Company, excluding deferred costs and net of other liabilities at book value, less (b) the Company’s (i) debt at face value, (ii) outstanding preferred stock at stated value, and (iii) non-controlling interests at book value;

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

value, and (iii) non-controlling interests at book value;

provided, that, non-controlling interests in any UPREIT operating partnership relating to the Company shall not be excluded.

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(i) no Revised Incentive Fee in any quarter in which the Excess Core FFO is $ 0 ;

(ii) 100 % of any Excess Core FFO up to an amount equal to the product of (x) the average of the Adjusted Common Equity as of the

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

first and last day of the applicable quarter and (y) 0.4375 %;

(ii) 100 % of any Excess Core FFO up to an amount equal to the product of (x) the average of the Adjusted Common Equity as of the first and last day of the applicable quarter and (y) 0.4375 %;

and (iii) 20 % of any Excess Core FFO thereafter.

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No such incentive fee was paid by the Company.

In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and/or reimbursement for performing certain services for the Company and its subsidiaries that are not covered by the Base Fee.

During the years ended December 31, 2023 and 2022, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, operational and on-going support in connection with the Company’s offering of Preferred Stock.

The Company will also reimburse the Administrator for the Company’s share of broken deal expenses that are incurred by the Administrator and its affiliates (i.e., fees and expenses relating to investments that were contemplated but the Company did not make and/or transactions that could have been executed by the Company but that the Company did not consummate, including

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

fees and expenses associated with performing due diligence review and negotiating the terms of such investments or transactions).

June 30, 2025 (Unaudited) – (Continued)

The Administrator’s compensation is based on the salaries and benefits of the employees of the Administrator and/or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of the Company and its subsidiaries).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Three Months Ended March 31,

June 30, 2025 (Unaudited) – (Continued)

Three Months Ended June 30, Six Months Ended June 30, 2025

2025 2024 2025 2024

Asset Management Fees:

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Property management fees (1)

$ 509 $ 577 $ 1,063 $ 1,160

Onsite management and other cost reimbursements (2)

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Leasing commissions (3)

$ 53 $ 183 $ 182 $ 238

Construction management fees (4)

$ 196 $ 138 $ 428 $ 190

Development management reimbursements (5)

$ 307 $ 591 $ 709 $ 1,013

Administrative Fees and Expenses:

2 unchanged sentences

Expense reimbursements to related parties - lending segment (6)

$ 678 $ 673 $ 1,337 $ 1,236

Offering-Related Fees:

Upfront dealer manager and trailing dealer manager fees (7)

$ — $ 110 $ — $ 377

Non-issuance specific offering costs (8)

$ — $ 213 $ — $ 423

(1) Does not include the Company’s share of the property management fees from the Unconsolidated Joint Ventures of $ 20,000 and $ 25,000 for the three months ended March 31, 2025 and 2024, respectively.

(2) Does not include the Company’s share of the onsite management and other cost reimbursements from the Unconsolidated Joint Ventures of $ 91,000 and $ 107,000 for the three months ended March 31, 2025 and 2024, respectively.

(3) Does not include the Company’s share of the leasing commissions from the Unconsolidated Joint Ventures of $ 7,000 and $ 4,000 for the three months ended March 31, 2025 and 2024, respectively.

(4) Does not include the Company’s share of the construction management fees from the Unconsolidated Joint Ventures of $ 58,000 and $ 87,000 for the three months ended March 31, 2025 and 2024, respectively.

(5) Does not include the Company’s share of the development management reimbursements from the Unconsolidated Joint Ventures of $ 175,000 and $ 179,000 for the three months ended March 31, 2025 and 2024, respectively.

(6) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $ 18,000 and $ 30,000 for the three months ended March 31, 2025 and 2024, respectively.

______________________

(1) Does not include the Company’s share of the property management fees from the Unconsolidated Joint Ventures of $ 24,000 and $ 44,000 for the three and six months ended June 30, 2025, respectively, and $ 25,000 and $ 50,000 for the three and six months ended June 30, 2024, respectively.

(2) Does not include the Company’s share of the onsite management and other cost reimbursements from the Unconsolidated Joint Ventures of $ 130,000 and $ 221,000 for the three and six months ended June 30, 2025, respectively, and $ 131,000 and $ 238,000 for the three and six months ended June 30, 2024, respectively.

(3) Does not include the Company’s share of the leasing commissions from the Unconsolidated Joint Ventures of $ 63,000 and $ 70,000 for the three and six months ended June 30, 2025, respectively, and $ 6,000 and $ 10,000 for the three and six months ended June 30, 2024, respectively.

(4) Does not include the Company’s share of the construction management fees from the Unconsolidated Joint Ventures of $ 65,000 and $ 123,000 for the three and six months ended June 30, 2025, respectively, and $ 35,000 and $ 122,000 for the three and six months ended June 30, 2024, respectively.

(5) Does not include the Company’s share of the development management reimbursements from the Unconsolidated Joint Ventures of $ 86,000 and $ 261,000 for the three and six months ended June 30, 2025, respectively, and $ 205,000 and $ 384,000 for the three and six months ended June 30, 2024, respectively.

(6) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $ 6,000 and $ 24,000 for the three and six months ended June 30, 2025, respectively, and $ 30,000 and $ 60,000 for the three and six months ended June 30, 2024, respectively.

(7) Represents fees earned by CCO Capital and allocated to Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock.

(8) As of March 31, 2025 and 2024, $ 0 and $ 230,000 , respectively, was included in deferred costs as reimbursable expenses incurred pursuant to the Master Services Agreement and the then applicable dealer manager agreement with CCO Capital.

(8) As of June 30, 2025 and 2024, $ 0 and $ 3.0 million, respectively, was included in deferred costs as reimbursable expenses incurred pursuant to the Master Services Agreement and the then applicable dealer manager agreement with CCO Capital.

These non-issuance specific costs are allocated against the gross proceeds from the sale of the Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock on a pro rata basis for each issuance as a percentage of the total offering.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

As of March 31, 2025 and December 31, 2024, due to related parties consisted of the following (in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 (Unaudited) – (Continued)

As of June 30, 2025 and December 31, 2024, due to related parties consisted of the following (in thousands):

June 30, 2025 December 31, 2024

Asset management fees $ 709 $ 1,403

10 unchanged sentences

In February 2023, the Company and the 1902 Park JV Partner invested in the 1902 Park JV, which purchased a multifamily property in the Echo Park neighborhood of Los Angeles, California for a gross purchase price of $ 19.1 million, with the Company owning a 50 % interest.

In October 2024, the 1902 Park JV admitted a new third-party co-investor and used part of the net capital contribution of such third party co-investor to satisfy the 1902 Park JV’s mortgage loan in full and the remaining contribution was used to make a distribution of $ 1.0 million to each of the Company and the 1902 Park JV Partner.

Subsequent to this contribution, the Company’s ownership share of the 1902 Park JV was 25.5 %.

7 unchanged sentences

Prior to the sale, for the three months ended March 31, 2023, the Company recorded rental and other property income related to this tenant of $ 194,000 .

For the three months ended March 31, 2025 the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 82,000 .

For the three months ended March 31, 2024, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 80,000 .

In connection with the the loan agreement for one of the Company’s fixed rate mortgages payable secured by three of the Company’s office properties in Los Angeles, California (the “Wilshire Mortgage Loan”), the Company (in such capacity, the “REIT Guarantor”) and CIM Group Investments, LLC, an affiliate of CIM Group (the “CIM Guarantor,” and, together with the REIT Guarantor, the “Guarantor”), delivered a customary non-recourse carveout guaranty to the lenders (the “Guaranty Agreement”), under which (i) the Company agreed to indemnify the lenders with respect to certain “non-recourse carveout events” and to be fully liable for the Wilshire Mortgage Loan in certain circumstances (e.g., the voluntary bankruptcy of the Borrowers and other insolvency events (collectively, the “Bankruptcy Events”)) and (ii) the CIM Guarantor is jointly and severally fully liable with the Company for the Wilshire Mortgage Loan in the case of Bankruptcy Events (collectively, the “Guaranties”).

The Guaranty Agreement requires Guarantor to maintain a net worth of no less than $ 105.0 million (the and liquid assets of no less than $ 6.0 million, in each case, exclusive of the values of the collateral for the Wilshire Mortgage Loan, provided that in the event of any partial prepayment or partial defeasance of the Wilshire Mortgage Loan, the above-referenced net worth and liquidity requirements will be reduced in proportion to the principal amount of the Wilshire Mortgage Loan that is partially prepaid and/or defeased, as the case may be.

For the three and six months ended June 30, 2025 the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 84,000 and $ 166,000 .

For the three and six months ended June 30, 2024, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 84,000 and $ 164,000 .

In connection with the loan agreement for one of the Company’s fixed rate mortgages payable secured by three of the Company’s office properties in Los Angeles, California (the “Wilshire Mortgage Loan”), the Company (in such capacity, the “REIT Guarantor”) and CIM Group Investments, LLC, an affiliate of CIM Group (the “CIM Guarantor,” and, together with the REIT Guarantor, the “Guarantor”), delivered a customary non-recourse carveout guaranty to the lenders (the “Guaranty Agreement”), under which (i) the Company agreed to indemnify the lenders with respect to certain “non-recourse carveout events” and to be fully liable for the Wilshire Mortgage Loan in certain circumstances (e.g., the voluntary bankruptcy of the Borrowers and other insolvency events (collectively, the “Bankruptcy Events”)) and (ii) the CIM Guarantor is jointly and severally fully liable with the Company for the Wilshire Mortgage Loan in the case of Bankruptcy Events (collectively, the “Guaranties”).

The Guaranty Agreement requires the Guarantor to maintain a net worth of no less than $ 105.0 million (and liquid assets of no less than $ 6.0 million, in each case, exclusive of the values of the collateral for the Wilshire Mortgage Loan, provided that in the event of any partial prepayment or partial defeasance of the Wilshire Mortgage Loan, the above-referenced net worth and liquidity requirements will be reduced in proportion to the principal amount of the Wilshire Mortgage Loan that is partially prepaid and/or defeased, as the case may be.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

COMMITMENTS AND CONTINGENCIES

Loan Commitments —Commitments to extend credit are agreements to lend to a customer when the terms established in the contract are met.

The Company’s outstanding commitments to fund loans were $ 9.0 million as of March 31, 2025, all of which are for prime-based loans to be originated by the Company’s subsidiary engaged in SBA 7(a) Small Business Loan Program lending, the government guaranteed portion of which is intended to be sold.

The Company’s outstanding commitments to fund loans were $ 17.2 million as of June 30, 2025, all of which are for prime-based loans to be originated by the Company’s subsidiary engaged in SBA 7(a) Small Business Loan Program lending, the government guaranteed portion of which is intended to be sold.

Commitments generally have fixed expiration dates.

1 unchanged sentence

General —In connection with the ownership and operation of real estate properties, the Company has certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals.

The Company had a total of $ 10.5 million in future obligations under leases to fund tenant improvements and other future construction obligations as of March 31, 2025.

As of March 31, 2025, $ 17.9 million was funded to reserve accounts included in restricted cash on the Company’s consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016.

The Company had a total of $ 6.7 million in future obligations under leases to fund tenant improvements and other future construction obligations as of June 30, 2025.

As of June 30, 2025, $ 14.9 million was funded to reserve accounts included in restricted cash on the Company’s consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016.

Employment Agreements —The Company has an employment agreement with one of its officers.

2 unchanged sentences

In the normal course of business, the Company is periodically party to certain legal actions and proceedings involving matters that are generally incidental to the Company’s business.

While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management’s opinion, the resolution of these legal proceedings and actions will not have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock.

A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary.

1 unchanged sentence

The Company anticipates that such payment will be made directly from the Company’s insurance carrier, which will be responsible for the entire payment.

Accordingly, the Company does not expect this lawsuit to have any adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company ability to satisfy its debt service obligations or to maintain the level of distributions on the Company’s Common Stock or Preferred Stock.

Accordingly, the Company does not expect this lawsuit to have any adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain the level of distributions on the Company’s Preferred Stock or pay dividends on our Common Stock.

SBA Related —If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Small Business Loan Program, the SBA may seek recovery of the principal loss related to the deficiency from the Company.

As of March 31, 2025, the Company serviced an aggregate of $ 212.8 million of the guaranteed portion of SBA 7(a) loans.

As of June 30, 2025, the Company serviced an aggregate of $ 207.2 million of the guaranteed portion of SBA 7(a) loans.

With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from the Company in the event that a loss is deemed to be attributable to technical deficiencies.

Based on historical experience, the Company does not expect that this contingency is probable to be asserted.

However, if asserted, it could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock.

Environmental Matters —In connection with the ownership and operation of real estate properties, the Company may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials.

The Company has not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and the Company is not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Future minimum rental revenue under long-term operating leases as of March 31, 2025, excluding tenant reimbursements of certain costs, are as follows (excludes unconsolidated properties, in thousands):

June 30, 2025 (Unaudited) – (Continued)

Future minimum rental revenue under long-term operating leases as of June 30, 2025, excluding tenant reimbursements of certain costs, are as follows (excludes unconsolidated properties, in thousands):

Years Ending December 31, Total

2025 (Nine months ending December 31, 2025) $ 39,129

2025 (Six months ending December 31, 2025) $ 27,125

Thereafter 43,529

SEGMENT DISCLOSURE

The Company’s reportable segments during the three months ended March 31, 2025 and 2024 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for the Company’s lending business.

The Company’s reportable segments during the three and six months ended June 30, 2025 and 2024 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for the Company’s lending business.

Management internally evaluates the operating performance and financial results of the segments based on net operating income.

9 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The net operating income (loss) of the Company’s segments for the three months ended March 31, 2025 and 2024 is as follows (in thousands):

Three Months Ended March 31,

June 30, 2025 (Unaudited) – (Continued)

The net operating income (loss) of the Company’s segments for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenues $ 11,877 $ 14,101 $ 24,931 $ 28,712

3 unchanged sentences

Total property expenses 6,533 6,397 12,457 13,260

(Loss) income from unconsolidated entities ( 29 ) 117

Income from unconsolidated entities 175 1,204 146 1,321

Segment net operating income—office 5,519 8,908 12,620 16,773

12 unchanged sentences

Loss from unconsolidated entity ( 612 ) ( 81 ) ( 1,734 ) ( 524 )

Segment net operating (loss) income—multifamily ( 620 ) 917

Segment net operating income (loss)—multifamily 189 2,252 ( 431 ) 3,169

Revenues 2,090 2,564 4,468 5,204

4 unchanged sentences

Total lending expenses 2,137 1,821 3,925 3,672

Segment net operating income—lending 590 789

Segment net operating (loss) income—lending ( 47 ) 743 543 1,532

Total segment net operating income $ 9,819 $ 16,223 $ 21,574 $ 29,856

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

A reconciliation of segment net operating income to net income attributable to the Company for the three months ended March 31, 2025 and 2024 is as follows (in thousands):

Three Months Ended March 31,

June 30, 2025 (Unaudited) – (Continued)

A reconciliation of segment net operating income to net income attributable to the Company for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Total segment net operating income $ 9,819 $ 16,223 $ 21,574 $ 29,856

6 unchanged sentences

Depreciation and amortization ( 6,264 ) ( 6,456 ) ( 12,824 ) ( 12,934 )

Loss before provision for income taxes ( 6,151 ) ( 3,635 )

Loss on early extinguishment of debt ( 88 ) — ( 88 ) —

Impairment of real estate ( 221 ) — ( 221 ) —

Loss before benefit (provision) for income taxes ( 8,993 ) ( 564 ) ( 15,144 ) ( 4,199 )

Provision for income taxes ( 158 ) ( 288 ) ( 279 ) ( 558 )

2 unchanged sentences

Net loss attributable to the Company $ ( 8,999 ) $ ( 796 ) $ ( 15,113 ) $ ( 4,526 )

The condensed assets for each of the segments as of March 31, 2025 and December 31, 2024 are as follows (in thousands):

March 31, 2025 December 31, 2024

The condensed assets for each of the segments as of June 30, 2025 and December 31, 2024 are as follows (in thousands):

June 30, 2025 December 31, 2024

Condensed assets:

6 unchanged sentences

(1) Beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property in the multifamily segment, from its previous classification in the office segment.

In the above table, the assets related to 4750 Wilshire Boulevard (Backlot) as of March 31, 2025 and December 31, 2024 are included in with Multifamily.

In the above table, the assets related to 4750 Wilshire Boulevard (Backlot) as of June 30, 2025 and December 31, 2024 are included in with Multifamily.

SUBSEQUENT EVENTS

On April 3, 2025, the Company entered into a $ 35.5 million first lien mortgage loan secured by a first priority deed of trust and security agreement on the Company’s fee simple interest in its office property at 3601 S Congress Avenue in Austin, Texas.

In connection with entry into such mortgage loan, the Company repaid in full the outstanding obligations under the 2022 Credit Facility.

In July 2025, the Company finalized the sale of a vacant land parcel adjacent to its multifamily property at 1150 Clay Street in Oakland, California for a gross sales price of $ 1.3 million.

In connection with such sale, the Company used a portion of the proceeds to paydown approximately $ 700,000 on the 1150 Clay Mortgage.

On August 4, 2025 the Company reached an agreement with the lender under the Channel House Mortgage, with a balance of $ 87.0 million as of June 30, 2025, to extend the maturity date through January 31, 2027 (the “Channel House Mortgage Extension”).

In connection with Channel House Mortgage Extension, the Company made a repayment of $ 6.0 million under the Channel House Mortgage.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements