What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-14 compared with 2025-08-14 · 329 added, 256 removed, 1043 unchanged (36% of the section changed)

3 unchanged sentences

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Investments in real estate, net $ 702,671 $ 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 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;

0 and 25,045,401 shares authorized as of September 30, 2025 and December 31, 2024, respectively;

no shares issued or outstanding as of September 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

12,504 20,799

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

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;

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

8,820,338 and 4,020,892 shares issued and outstanding, respectively, as of September 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 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;

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

12,240,878 and 9,092,063 shares issued and outstanding, respectively, as of September 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 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;

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

56,857 and 48,447 shares issued and outstanding, respectively, as of both September 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 June 30, 2025 and 466,176 shares issued and outstanding as of December 31, 2024

789,251 shares issued and outstanding as of September 30, 2025 and 466,176 shares issued and outstanding as of December 31, 2024

Additional paid-in capital 1,000,454 994,973

8 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

14 unchanged sentences

Total Expenses 38,728 37,938 114,268 111,371

(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 )

Loss from unconsolidated entities ( 697 ) ( 1,239 ) ( 2,285 ) ( 442 )

Gain on sale of real estate (Note 3) 679 — 679 —

LOSS BEFORE PROVISION FOR INCOME TAXES ( 12,512 ) ( 10,561 ) ( 27,656 ) ( 14,760 )

Provision for income taxes 74 15 353 573

16 unchanged sentences

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

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Common Stock Preferred Stock

36 unchanged sentences

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

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

Distributions to noncontrolling interests — — — — — — — ( 10 ) ( 10 )

Stock-based compensation expense 34,644 2 — — 55 — 57 — 57

Reclassification of Series A1 Preferred Stock to Permanent Equity — — 548,876 13,894 ( 1,392 ) — 12,502 — 12,502

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)

— — — — — ( 1,384 ) ( 1,384 ) — ( 1,384 )

Net loss — — — — — ( 12,455 ) ( 12,455 ) ( 131 ) ( 12,586 )

Balances, September 30, 2025 789,251 $ 3 13,161,402 $ 327,869 $ 1,000,454 $ ( 1,046,395 ) $ 281,931 $ 1,020 $ 282,951

Nine Months Ended September 30, 2024

Common Stock Preferred Stock

37 unchanged sentences

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

Stock based compensation expense 431 — — — 55 — 55 — 55

Stock dividend ($ 0.04 per share)

— 3 — — 3,336 ( 3,339 ) — — —

Redemption of Series A1 Preferred Stock paid in cash — — ( 31,967 ) ( 791 ) 70 ( 17 ) ( 738 ) — ( 738 )

Redemption of Series A1 Preferred Stock paid in Common Stock

131,995 33 ( 2,590,616 ) ( 64,127 ) 70,147 ( 8,440 ) ( 2,387 ) — ( 2,387 )

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

— — — — — ( 5,710 ) ( 5,710 ) — ( 5,710 )

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

— — — — — ( 17 ) ( 17 ) — ( 17 )

Redeemable preferred stock accretion — — — — — ( 327 ) ( 327 ) — ( 327 )

Redemption of Series A Preferred Stock paid in cash — — ( 247,627 ) ( 6,214 ) 530 ( 459 ) ( 6,143 ) — ( 6,143 )

Redemption of Series A Preferred Stock paid in Common Stock

110,215 28 ( 2,167,156 ) ( 53,927 ) 58,861 ( 7,180 ) ( 2,218 ) — ( 2,218 )

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

— — — — — ( 2,239 ) ( 2,239 ) — ( 2,239 )

Net loss — — — — — ( 10,384 ) ( 10,384 ) ( 192 ) ( 10,576 )

Balances, September 30, 2024 333,787 $ 87 12,942,114 $ 321,770 $ 984,978 $ ( 985,874 ) $ 320,961 $ 1,900 $ 322,861

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

2 unchanged sentences

(In thousands) (Unaudited)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $ ( 28,009 ) $ ( 15,333 )

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

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

Depreciation and amortization, net 20,279 19,624

Gain on sale of real estate ( 679 ) —

Impairment of real estate 221 —

5 unchanged sentences

Write-offs of uncollectible receivables 978 782

Write-off of other deferred costs — 491

Loss on interest rate caps 142 425

1 unchanged sentence

Stock-based compensation 165 165

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

Loss from unconsolidated entities 2,285 442

Loans funded, held for sale to secondary market ( 10,707 ) ( 13,017 )

9 unchanged sentences

Due to related parties 4,543 5,401

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

Net cash provided by operating activities 2,471 15,880

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures ( 15,667 ) ( 12,778 )

Receipt of deferred key money 2,290 —

Proceeds from sale of real estate, net 1,161 1,096

16 unchanged sentences

Distributions to noncontrolling interests ( 295 ) ( 43 )

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

Net cash provided by (used in) financing activities 2,185 ( 9,429 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

1 unchanged sentence

(In thousands) (Unaudited)

Six Months Ended

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

Nine Months Ended

September 30,

NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 4,641 ) ( 8,253 )

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:

12 unchanged sentences

Accrued preferred stock offering costs $ — $ 714

Accrual of dividends payable to common stockholders $ — $ 1,937

Accrual of dividends payable to preferred stockholders $ 5,280 $ 2,045

6 unchanged sentences

Accrued redeemable preferred stock fees $ 183 $ 191

Write-off of preferred stock deferred offering costs $ — $ 5,123

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

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited)

September 30, 2025 (Unaudited)

ORGANIZATION AND OPERATIONS

3 unchanged sentences

The Company seeks to apply the expertise of CIM Group Management, LLC (“CIM Group”) and its affiliates to the acquisition, development and operation of premier multifamily properties and creative office assets that cater to rapidly growing industries such as technology, media and entertainment in vibrant and emerging communities throughout the United States.

The Company’s common stock, $ 0.001 par value per share (“Common Stock”), is currently traded on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “CMCT”, and on the Tel Aviv Stock Exchange (the “TASE”) under the ticker symbol “CMCT.” The Company is in the process of voluntarily delisting its Common Stock from the TASE.

See Part II Item 5 of this Quarterly Report on Form 10-Q.

The Company’s common stock, $ 0.001 par value per share (“Common Stock”), is currently traded on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “CMCT.” On August 15, 2025, the Company voluntarily delisted its Common Stock from the Tel Aviv Stock Exchange (the “TASE”), where it had previously been listed under the ticker symbol “CMCT.” See Part II Item 5 of this Quarterly Report on Form 10-Q.

On January 6, 2025, the Company effected a 1-for-10 reverse stock split (the “January Reverse Stock Split”) on its Common Stock.

11 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 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.

Operating results for the three and nine months ended September 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

June 30, 2025 (Unaudited) – (Continued)

September 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 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.

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

In addition, as of September 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 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).

The Company recognized an impairment of long-lived assets of $ 0 and $ 221,000 during the three and nine months ended September 30, 2025, respectively.

No impairment of long-lived assets was recognized during the three and nine months ended September 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

June 30, 2025 (Unaudited) – (Continued)

September 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 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.

As of September 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

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,

September 30, 2025 (Unaudited) – (Continued)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

15 unchanged sentences

The Company does not use a general reserve approach.

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.

As of September 30, 2025 and December 31, 2024, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $ 590,000 and $ 640,000 , respectively.

Revenue from lending activities

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

10 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 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.

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

As of September 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 $ 7.2 million and $ 7.9 million as of June 30, 2025 and December 31, 2024, respectively.

Unamortized retained loan discounts were $ 7.0 million and $ 7.9 million as of September 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.

4 unchanged sentences

While ASU 2016-13 does not require any particular method for determining CECL, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan.

In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the credit loss model have some amount of loss reserve to reflect the GAAP principal underlying the credit loss model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the credit loss model have some

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

amount of loss reserve to reflect the GAAP principal underlying the credit loss model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors.

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

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

As of September 30, 2025 and December 31, 2024, the Company had a total CECL of $ 2.6 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.

20 unchanged sentences

Deferred offering costs represented direct costs incurred in connection with the Company’s offerings of Series A1 Preferred Stock (as defined below), Series A Preferred Stock (as defined below), and Series D Preferred Stock (as defined below), excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses.

Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred.

Deferred offering costs were first allocated to each issuance of a security on a pro-rata basis equal to the ratio of the number of securities issued in a given issuance to the maximum number of securities that were expected to be issued

Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

in the related offering.

September 30, 2025 (Unaudited) – (Continued)

proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred.

With respect to shares of Series A1 Preferred Stock issued from June 2024 through September 2024, 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.

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

June 30, 2025 December 31, 2024

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

September 30, 2025 December 31, 2024

Deferred rent receivable $ 11,384 $ 12,931

10 unchanged sentences

Restricted cash also includes cash required to be segregated in connection with certain of the Company’s loans receivable and with its SBA 7(a) loan-backed notes.

Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

expenses during the reporting period.

September 30, 2025 (Unaudited) – (Continued)

Key Money —Key money received in connection with the hotel management agreement which the Company has entered into with the franchisor of its hotel property in Sacramento, California (the “Sheraton Management Agreement”) following the completion of specific capital projects is deferred and amortized over the term of the Sheraton Management Agreement.

Deferred key money is classified as deferred income and recorded in other liabilities in the Company’s accompanying consolidated balance sheet and amortized as an offset to management fees paid to the franchisor under the Sheraton Management Agreement.

As of September 30, 2025, deferred key money of $ 2.3 million was presented net of accumulated amortization of $ 21,000 .

No deferred key money had been recorded as of December 31, 2024.

The Company bases such estimates on historical experience, information available at the time, and assumptions the Company believes to be reasonable under the circumstances at such time.

27 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

INVESTMENTS IN REAL ESTATE

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Land $ 175,201 $ 175,682

7 unchanged sentences

Net investments in real estate $ 702,671 $ 709,194

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.

For the three months ended September 30, 2025 and 2024, the Company recorded depreciation expense of $ 6.9 million and $ 5.9 million, respectively.

For the nine months ended September 30, 2025 and 2024, the Company recorded depreciation expense of $ 18.6 million and $ 17.5 million, respectively.

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.

During the nine months ended months ended September 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 $ 0 and $ 221,000 during the three and nine months ended September 30, 2025, respectively.

The Company recorded no impairment charges during the three and nine months ended September 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.

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

2025 and 2024 Transactions and Assets Held for Sale —In July 2025, the Company sold a vacant land parcel adjacent to its multifamily property at 1150 Clay Street in Oakland, California (“1150 Clay”).

The Company received proceeds of $ 1.2 million, net of transaction costs of $ 89,000 , and recorded a gain on the sale of $ 679,000 during the three and nine months ended September 30, 2025.

In connection with the sale, the Company used a portion of the proceeds to make a repayment of $ 696,000 under the mortgage loan at 1150 Clay.

There were no acquisitions or dispositions during the nine months ended September 30, 2024.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

INVESTMENT IN UNCONSOLIDATED ENTITIES

2 unchanged sentences

Ownership Interest Carrying Value

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

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

1910 Sunset Boulevard (1)

12 unchanged sentences

(1) 1910 Sunset Boulevard is an office building with 105,064 square feet of office space and 2,760 square feet of retail space.

The 1910 Sunset JV (defined below).

The 1910 Sunset JV has begun the 1915 Park Project (defined below) to build 36 multifamily units on the 1915 Park Avenue land parcel adjacent to the office building.

The 1910 Sunset JV (defined below) is nearing completion on its 1915 Park Project (defined below) to build 36 multifamily units on the 1915 Park Avenue land parcel adjacent to the office building.

(2) 4750 Wilshire Boulevard is a three-story office building with 30,335 square feet of office space located on the first floor.

3 unchanged sentences

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

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.

As of September 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.

1 unchanged sentence

The Company provided a limited guarantee to the lender under the 1910 Sunset Mortgage Loan.

The 1910 Sunset JV has begun construction to build 36 multifamily units on the 1915 Park Avenue land parcel adjacent to the office building (the “1915 Park Project”).

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 $ 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.

As of September 30, 2025, the 1910 Sunset JV is nearing completion on its project to build 36 multifamily units on the 1915 Park Avenue land parcel adjacent to the office building (the “1915 Park Project”).

The 1910 Sunset JV is financing 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 $ 6.4 million as of September 30, 2025 and total borrowing availability of $ 9.4 million).

As of September 30, 2025, the 1910 Sunset JV had incurred total costs of $ 12.5 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 $ 37.8 million as of June 30, 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 September 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

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

4750 Wilshire Construction Loan.

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.

As of September 30, 2025, total costs of $ 28.6 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.

9 unchanged sentences

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

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.

The Company recorded a loss of $ 697,000 and $ 2.3 million related to its investment in the Unconsolidated Joint Ventures during the three and nine months ended September 30, 2025, respectively, and a loss of $ 1.2 million and $ 442,000 during the three and nine months ended September 30, 2024, respectively.

LOANS RECEIVABLE

Loans receivable consist of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

SBA 7(a) loans receivable, subject to credit risk $ 22,170 $ 19,306

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 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 June 30, 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 September 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 six months ended June 30, 2025 and June 30, 2024 (dollar amounts in thousands):

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

Loans Receivable

4 unchanged sentences

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

Net adjustment to reserve for expected credit losses

Current expected credit losses as of September 30, 2025 $ 2,617

Current expected credit losses as of December 31, 2023

3 unchanged sentences

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

Net adjustment to reserve for expected credit losses 259

Current expected credit losses as of September 30, 2024 $ 1,866

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 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.

During the three and nine months ended September 30, 2025, the Company recorded an increase of $ 166,000 and $ 585,000 , 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 nine months ended September 30, 2024, the Company recorded an increase of $ 259,000 and $ 186,000 , 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

June 30, 2025 (Unaudited) – (Continued)

September 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 June 30, 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 September 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 June 30, 2025

As of September 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 $ 51,517

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 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.

As of September 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 September 30, 2025 and December 31, 2024, 92.0 % 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 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.

As of September 30, 2025 and December 31, 2024, $ 6.4 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

June 30, 2025 (Unaudited) – (Continued)

September 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 June 30, 2025 and December 31, 2024 is as follows (in thousands):

June 30, 2025 December 31, 2024

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

September 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 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,

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

1 unchanged sentence

Acquired in-place lease amortization $ 31 $ 94 $ 140 $ 281

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

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

Years Ending December 31, Acquired

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

2025 (Three months ending December 31, 2025) $ 30

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

September 30, 2025 (Unaudited) – (Continued)

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

During the Nine Months Ended September 30, 2025

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

Mortgages Payable:

17 unchanged sentences

Total Debt, Net $ 505,732 $ 49,209 $ ( 29,355 ) $ 2,181 $ 527,767

(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.

(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 nine months ended September 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 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.

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

In regards to the mortgage payable with a balance of $ 66.3 million as of September 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.

3 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

In regards to the mortgage payable with a balance of $ 97.1 million as of September 30, 2025 maturing on July 1, 2026 (the “1 Kaiser Mortgage”), the Company intends to work with the lender in order to refinance the 1 Kaiser Mortgage beyond its stated maturity date of July 1, 2026.

Although the Company believes it is likely it will be able to refinance the 1 Kaiser Mortgage prior to July 1, 2026, there can be no assurance that such refinancing will occur.

If the Company and the lender under the 1 Kaiser 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.

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.

As of September 30, 2025, the Company’s variable rate mortgages payable had a variable interest rate of SOFR plus 4.35 %, SOFR plus 3.36 %, SOFR plus 3.00 % and SOFR plus 2.95 %, with a maturity date of January 1, 2027, January 31, 2027, February 14, 2027 and April 3, 2028, respectively.

The mortgages with maturity dates of January 1, 2027, January 31, 2027, and February 14, 2027 have monthly payments of interest only, while the mortgage with a 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 $ 81.0 million as of September 30, 2025 secured by a multifamily property in Oakland,California, (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, reducing it from its previous balance of $ 87.0 million.

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 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.

As of September 30, 2025, the Company’s secured borrowings-government guaranteed loans included $ 340,000 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 September 30, 2025, and $ 983,000 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 September 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.

1 unchanged sentence

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.

As of September 30, 2025, the effective interest rate for the Lending Division Revolving Credit Facility was 7.19 % 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.

On October 22, 2025, the Company entered into an amendment to the Parent Guaranty to modify the Parent Guaranty’s consolidated fixed charge coverage ratio covenant.

Pursuant to the amendment, the Company must maintain a consolidated fixed charge coverage ratio of (x) for the fiscal quarters ending September 30, 2025 and December 31, 2025, not less than 1.00 to 1.00, and (y) for any fiscal quarter ending after December 31, 2025, not less than 1.15 to 1.00.

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”).

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

hotel property and adjacent parking garage (the “Hotel Properties”).

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

1 unchanged sentence

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

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.

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

1 unchanged sentence

The junior subordinated notes may be redeemed at par at the Company’s option.

SBA 7(a) Loan-Backed Notes —On March 9, 2023, the Company completed a securitization of the unguaranteed portion of certain of its SBA 7(a) loans receivable with the issuance of $ 54.1 million of unguaranteed SBA 7(a) loan-backed notes (with net proceeds of approximately $ 43.3 million, after payment of fees and expenses in connection with the securitization and the funding of a reserve account and an escrow account).

SBA 7(a) Loan-Backed Notes —On March 9, 2023, the Company completed a securitization of the unguaranteed portion of certain of its SBA 7(a) loans receivable with the issuance of $ 54.1 million of unguaranteed SBA 7(a) loan-backed notes (the “SBA 7(a) Loan-Backed Notes”) (with net proceeds of approximately $ 43.3 million, after payment of fees and expenses in connection with the securitization and the funding of a reserve account and an escrow account).

The SBA 7(a) Loan-Backed Notes are collateralized by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of the Company’s SBA 7(a) loans receivable.

1 unchanged sentence

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

As of September 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 $ 2.8 million as of June 30, 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 $ 3.6 million as of September 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 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):

As of September 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.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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

Years Ending December 31, Mortgage Payable (1)

1 unchanged sentence

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

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

2025 (Three months ending December 31, 2025) $ 150 $ 25 $ — $ 1,020 $ 1,195

2026 164,004 102 — 8,504 172,610

5 unchanged sentences

______________________

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

(1) In regards to the $ 66.3 million 1150 Clay Mortgage, which matures on June 7, 2026, see the discussion under Fixed Rate Mortgages Payable.

In regards to the $ 97.1 million 1 Kaiser Mortgage, which matures on July 1, 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.

2 unchanged sentences

(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 June 30, 2025 (dollar amounts in thousands):

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

Outstanding Notional Fair Value of Assets

Balance Sheet Amount as of Strike Effective Maturity as of

Location June 30, 2025 Rates (1)

Dates Dates June 30, 2025

Location September 30, 2025 Rates (1)

Dates Dates September 30, 2025

Interest Rate Caps Other assets $ 171,049

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 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.

During the three and nine months ended September 30, 2025, the Company recorded an unrealized loss of $ 43,000 and $ 142,000 , respectively, which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

During the three and nine months ended September 30, 2024, the

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Company recorded an unrealized loss of $ 407,000 and $ 425,000 , 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 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.

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 September 30, 2025 and 2024, and $ 165,000 for both the nine months ended September 30, 2025 and 2024.

As of September 30, 2025, there was $ 183,000 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 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).

The computation of basic EPS is 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 September 30, 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 and nine months ended September 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 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,

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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 nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

8 unchanged sentences

Diluted $ ( 23.52 ) $ ( 305.04 ) $ ( 63.18 ) $ ( 550.84 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 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 and six months ended June 30, 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 nine months ended September 30, 2025 and 2024 (dollar amounts in thousands):

Preferred Stock

9 unchanged sentences

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

Redemption of Series A1 Preferred Stock paid in cash ( 31,967 ) ( 791 ) — — — — ( 31,967 ) ( 791 )

Redemption of Series A1 Preferred Stock paid in Common Stock ( 2,590,616 ) ( 64,127 ) — — — — ( 2,590,616 ) ( 64,127 )

Redemption of Series A Preferred Stock paid in cash — — ( 247,627 ) ( 6,214 ) — — ( 247,627 ) ( 6,214 )

Redemption of Series A Preferred Stock paid in Common Stock — — ( 2,167,156 ) ( 53,927 ) — — ( 2,167,156 ) ( 53,927 )

Balances, September 30, 2024 8,553,591 $ 211,877 4,340,076 $ 108,703 48,447 $ 1,190 12,942,114 $ 321,770

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

6 unchanged sentences

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)

Reclassification of Series A1 Preferred Stock to Permanent Equity 548,876 $ 13,894 — $ — — $ — 548,876 $ 13,894

Balances, September 30, 2025 9,092,063 $ 225,959 4,020,892 $ 100,720 48,447 $ 1,190 13,161,402 $ 327,869

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.

3 unchanged sentences

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.

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 reclassified 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 September 30, 2025, the Company had reclassified an aggregate of $ 20.8 million in net proceeds from temporary equity to permanent equity.

As of September 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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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 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.

As of September 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.

1 unchanged sentence

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 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.

The Company recorded no redeemable preferred stock deemed dividends related to such adjustments during the three and nine months ended September 30, 2025 and $ 327,000 and $ 755,000 during the three and nine months ended September 30, 2024.

As of September 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”).

As of September 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 September 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.

3 unchanged sentences

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

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 September 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 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 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 September 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 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.

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

As of September 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 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”).

As of September 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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Common Stock, including all accrued and unpaid dividends as of each redemption date and, in addition, as of September 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.

3 unchanged sentences

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

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.

As of September 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 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.

As of September 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 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).

As of September 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.

2 unchanged sentences

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

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.

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 nine months ended September 30, 2025, the Company paid $ 12.4 million, $ 4.2 million, and $ 51,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, respectively.

Additionally, during the nine months ended September 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 nine months ended September 30, 2024, the Company paid $ 16.2 million, $ 7.3 million, and $ 51,000 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.

The redemption schedule of the Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock allows redemptions at the option of the holder of Series A1 Preferred Stock, Series A Preferred Stock or Series D Preferred Stock from the date of original issuance of any such shares at the Series A1 Preferred Stock Stated Value, Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, respectively, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends.

The Company has the right to redeem the Series A1 Preferred Stock after the date that is twenty-four months following the original issuance of such shares of Series A1 Preferred Stock at the Series A1 Preferred Stock Stated Value, plus accrued and unpaid dividends.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

unpaid dividends.

The Company has the right to redeem the Series A Preferred Stock or Series D Preferred Stock after the fifth anniversary of the date of original issuance of such shares at the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, respectively, plus accrued and unpaid dividends.

1 unchanged sentence

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, which the Company currently expects will be in the third or fourth quarter of 2025.

STOCKHOLDERS’ EQUITY

2 unchanged sentences

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 six months ended June 30, 2024 consisted of the following ( no cash dividends were declared for the six months ended June 30, 2025):

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

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

September 16, 2024 October 8, 2024 Regular Quarterly (a.)

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

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

_____________________

The Company’s Board of Directors declared a stock dividend of $ 10.00 (or 5.05 shares of Common Stock, as determined on a reverse split-adjusted basis) per share of Common Stock, payable in shares of Common Stock, using a price of $ 496.25 per share, resulting in the issuance of 6,739 shares of Common Stock.

The stock dividend was retrospectively applied to the periods reflected in the consolidated statements of operations included in this Quarterly Report on Form 10-Q.

Series A Preferred Warrants

1 unchanged sentence

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

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.

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 September 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 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.

There were no repurchases during the three and nine months ended September 30, 2025.

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

FAIR VALUE MEASUREMENTS

20 unchanged sentences

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

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Discount Rate Prepayment Rate Discount Rate Prepayment Rate

13 unchanged sentences

All derivative instruments are carried at fair value and are valued using Level 2 inputs.

The fair value of these instruments are determined using interest rate market pricing models.

The fair value of these instruments is

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

determined using interest rate market pricing models.

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 June 30, 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):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Amount Estimated

15 unchanged sentences

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 .

As discussed in Note 3, during the nine months ended September 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.

2 unchanged sentences

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

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

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

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Asset class impaired:

1 unchanged sentence

Total impairment loss $ — $ ( 221 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

RELATED-PARTY TRANSACTIONS

15 unchanged sentences

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

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.

5 unchanged sentences

Revised Incentive Fees payable for any partial quarter will be appropriately prorated.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

“Adjusted Common Equity” means Common Equity plus Excluded Depreciation and Amortization.

22 unchanged sentences

No such incentive fee was paid by the Company.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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.

1 unchanged sentence

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

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).

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Company and its subsidiaries).

The expense for such services is included in expense reimbursements to related parties—corporate in the accompanying consolidated statements of operations.

20 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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

September 30, 2025 (Unaudited) – (Continued)

Three Months Ended September 30, Nine Months Ended September 30, 2025

2025 2024 2025 2024

23 unchanged sentences

______________________

(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.

(1) Does not include the Company’s share of the property management fees from the Unconsolidated Joint Ventures of $ 25,000 and $ 69,000 for the three and nine months ended September 30, 2025, respectively, and $ 24,000 and $ 74,000 for the three and nine months ended September 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 $ 117,000 and $ 338,000 for the three and nine months ended September 30, 2025, respectively, and $ 176,000 and $ 414,000 for the three and nine months ended September 30, 2024, respectively.

(3) Does not include the Company’s share of the leasing commissions from the Unconsolidated Joint Ventures of $ 0 and $ 70,000 for the three and nine months ended September 30, 2025, respectively, and $ 0 and $ 10,000 for the three and nine months ended September 30, 2024, respectively.

(4) Does not include the Company’s share of the construction management fees from the Unconsolidated Joint Ventures of $ 21,000 and $ 144,000 for the three and nine months ended September 30, 2025, respectively, and $ 6,000 and $ 128,000 for the three and nine months ended September 30, 2024, respectively.

(5) Does not include the Company’s share of the development management reimbursements from the Unconsolidated Joint Ventures of $ 73,000 and $ 334,000 for the three and nine months ended September 30, 2025, respectively, and $ 241,000 and $ 625,000 for the three and nine months ended September 30, 2024, respectively.

(6) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $ 24,000 and $ 48,000 for the three and nine months ended September 30, 2025, respectively, and $ 24,000 and $ 84,000 for the three and nine months ended September 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 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.

(8) As of September 30, 2025 and 2024, $ 0 and $ 3.2 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

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

September 30, 2025 (Unaudited) – (Continued)

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

September 30, 2025 December 31, 2024

Asset management fees $ 1,040 $ 1,403

16 unchanged sentences

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

On May 15, 2019, an affiliate of CIM Group entered into an approximately 11-year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company (4750 Wilshire).

The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet.

In February 2023, the Company sold an 80 % interest in 4750 Wilshire and now holds its retained 20 % interest in the property through the 4750 Wilshire JV.

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 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 .

On May 15, 2019, an affiliate of CIM Group entered into an approximately 11-year lease that runs through May 2030 for approximately 30,000 rentable square feet with respect to a property owned 4750 Wilshire JV, in which the Company has a 20 % interest.

For the three and nine months ended September 30, 2025 the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 85,000 and $ 251,000 .

For the three and nine months ended September 30, 2024, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 84,000 and $ 248,000 .

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

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 $ 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.

The Company’s outstanding commitments to fund loans were $ 16.5 million as of September 30, 2025,

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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 $ 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.

The Company had a total of $ 6.0 million in future obligations under leases to fund tenant improvement as of September 30, 2025.

As of September 30, 2025, $ 13.5 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 various mortgage loan agreements.

Under the terms of the Sheraton Management Agreement, the Company is obligated to complete specific renovation projects at its hotel property (the “Sheraton Renovations”).

As of September 30, 2025, the expected costs to complete the Sheraton Renovations was $ 7.2 million.

As of September 30, 2025, the Company was entitled to receive an additional $ 5.7 million of key money under the Sheraton Management Agreement, to be made available to the Company upon completion of specific aspects of the Sheraton Renovation.

The Company also has available borrowings of $ 2.2 million under a mortgage loan agreement at its hotel property which can be used to finance remaining costs related to the Sheraton Renovations.

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

8 unchanged sentences

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

As of September 30, 2025, the Company serviced an aggregate of $ 204.2 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.

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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):

September 30, 2025 (Unaudited) – (Continued)

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

Years Ending December 31, Total

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

2025 (Three months ending December 31, 2025) $ 13,894

Thereafter 61,071

SEGMENT DISCLOSURE

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.

The Company’s reportable segments during the three and nine months ended September 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

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,

September 30, 2025 (Unaudited) – (Continued)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

4 unchanged sentences

Total property expenses 6,921 7,566 19,378 20,826

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

(Loss) income from unconsolidated entities ( 528 ) ( 834 ) ( 382 ) 487

Segment net operating income—office 5,015 5,419 17,635 22,192

11 unchanged sentences

Total property expenses 2,914 3,860 9,646 10,365

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

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

Loss from unconsolidated entities ( 169 ) ( 405 ) ( 1,903 ) ( 929 )

Segment net operating income—multifamily 792 508 361 3,677

Revenues 2,218 2,724 6,686 7,928

4 unchanged sentences

Total lending expenses 1,904 2,036 5,829 5,708

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

Segment net operating income—lending 314 688 857 2,220

Total segment net operating income $ 6,971 $ 7,588 $ 28,545 $ 37,444

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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,

September 30, 2025 (Unaudited) – (Continued)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

9 unchanged sentences

Impairment of real estate — — ( 221 ) —

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

Gain on sale of real estate 679 — 679 —

Loss before provision for income taxes ( 12,512 ) ( 10,561 ) ( 27,656 ) ( 14,760 )

Provision for income taxes ( 74 ) ( 15 ) ( 353 ) ( 573 )

2 unchanged sentences

Net loss attributable to the Company $ ( 12,455 ) $ ( 10,384 ) $ ( 27,568 ) $ ( 14,910 )

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

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

September 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 June 30, 2025 and December 31, 2024 are included in with Multifamily.

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

SUBSEQUENT EVENTS

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.

On November 6, 2025, the Company and First Western SBLC, Inc., a Florida corporation and an indirect wholly owned subsidiary of the Company (“First Western”) and which represents the Company’s lending business which originates loans under the SBA 7(a) Program, entered into a membership interest purchase agreement (the “Membership Interest Purchase Agreement”), with PG FR Holding, LLC, a Delaware limited liability company (the “Buyer”).

Pursuant to the Membership Interest Purchase Agreement, and upon the terms and subject to the conditions therein, Buyer will purchase from the Company all of the issued and outstanding equity interests of First Western (the “Transactions”).

The Company estimates that, pursuant to the Membership Interest Purchase Agreement and based on information related to First Western’s assets and other matters as of

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

September 30, 2025, the purchase price will be approximately $ 44 million (which is net of the outstanding balance of SBA 7(a) Loan-Backed Notes), subject to adjustment and updated information through the closing (the “Closing”) of the Transactions.

Upon the Closing and giving effect to the payment of other debt, transaction expenses and other matters, the Transactions are expected to yield net cash proceeds to the Company of approximately $ 31 million.

The Closing is subject to the receipt of the SBA’s consent to the acquisition by the Buyer of the equity interests in First Western and certain customary closing conditions, including (i) the absence of any law or order that challenges or may prevent the consummation of the Transactions, (ii) the accuracy of the representations and warranties of each party, subject to certain materiality thresholds, (iii) the performance and compliance by each party with the covenants and obligations of such party pursuant to the Membership Interest Purchase Agreement in all material respects and (iv) Barry Berlin not terminating, providing a notice of his intention to terminate, or otherwise rescinding his agreement to work for an affiliate of Buyer following the Closing.

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