What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-03-10 compared with 2025-03-07 · 499 added, 511 removed, 1339 unchanged (43% of the section changed)

1 unchanged sentence

Evaluation of Disclosure Controls and Procedures

As of December 31, 2024, we carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, regarding the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this report.

As of December 31, 2025, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, regarding the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this report.

Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and include controls and procedures designed to ensure the information required to be disclosed by us in such reports is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

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Certain Relationships and Related Transactions, and Director Independence

The information required by this Item will appear in an amendment to this Annual Report on Form 10-K or the

Company’s Proxy Statement, which will be filed or delivered to our stockholders in connection with our 2025 Annual Meeting of Stockholders not later than 120 days after the end of the fiscal year covered by this Annual Report.

The information required by this Item will appear in an amendment to this Annual Report on Form 10-K or the Company’s Proxy Statement, which will be filed or delivered to our stockholders in connection with our 2026 Annual Meeting of Stockholders not later than 120 days after the end of the fiscal year covered by this Annual Report.

Such information is incorporated herein by reference.

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The following documents are included or incorporated by reference in this Annual Report on Form 10-K:

Membership Interest Purchase Agreement, dated as of November 6, 2025, by and among PG FR Holding LLC, Creative Media & Trust Corporation and First Western SBLC, Inc.

(incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K as filed with the SEC on January 22, 2026).

3.1 Articles of Amendment and Restatement (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on May 2, 2014).

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3.1(f) Articles of Amendment (Name Change) (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 10, 2022).

Articles of Amendment (Reverse Stock Split) (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on January 13, 2025).

Articles of Amendment (Par Value Decrease) (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on January 13, 2025).

Articles of Amendment (Reverse Stock Split) (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 17, 2025).

Articles of Amendment (Par Value Decrease) (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 17, 2025).

3.2 Articles Supplementary, designating the Series A Preferred Stock (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on October 27, 2016).

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3.7 Bylaws of Creative Media & Community Trust Corporation (incorporated by reference to Exhibit 3.6 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 16, 2022).

Description of Securities of Creative Media & Community Trust Corporation

Description of Securities of Creative Media & Community Trust Corporation (incorporated by reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K filed with the SEC on March 7, 2025).

4.2 Purchase Agreement among PMC Commercial Trust, PMC Preferred Capital Trust-A and Taberna Preferred Funding I, Ltd.

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Fourth Modification Agreement, dated as of January 31, 2024, by and among certain wholly owned subsidiaries of Creative Media & Community Trust Corporation, each Lender party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 12, 2025).

Insider Trading Policy, dated December 17, 2024.

Fifth Modification Agreement, dated as of March 25, 2025, by and among certain wholly owned subsidiaries of Creative Media & Community Trust Corporation, each Lender party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K as filed with the SEC on April 2, 2025).

Loan Agreement, dated as of April 3, 2025, by and among certain subsidiary borrowers of Creative Media & Community Trust Corporation and Comerica Bank (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K as filed with the SEC on April 9, 2025).

Guaranty Agreement, dated as of April 3, 2025, by and between Creative Media & Community Trust Corporation for the benefit of Comerica Bank (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K as filed with the SEC on April 9, 2025).

Environmental Indemnity Agreement, dated as of April 3, 2025, by certain subsidiary borrowers of Creative Media & Community Trust Corporation and Creative Media & Community Trust Corporation for the benefit of Comerica Bank (incorporated by reference to Exhibit 10.3 of the Registrant’s Current Report on Form 8-K as filed with the SEC on April 9, 2025).

Sixth Amendment to Lease Agreement, dated as of March 1, 2025, by and between CIM/Oakland 1 Kaiser Plaza, LP and Kaiser Foundation Health Plan, Inc (incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q as filed with the SEC on May 9, 2025).

Confidential Separation Agreement and General Mutual Release of All Claims, dated as of November 6, 2025, by and among CIM SBA Staffing, LLC, Creative Media & Community Trust Corporation (f/k/a PMC Commercial Trust and CIM Commercial Trust), CIM Group, L.P.

Berlin (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K as filed with the SEC on November 12, 2025).

Insider Trading Policy, dated December 17, 2024 (incorporated by reference to Exhibit 19.1 to the Registrant's Annual Report on Form 10-K as filed with the SEC on March 7, 2025).

Subsidiaries of the Registrant.

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March 9, 2026 By:

/s/ BRANDON HILL

Chief Financial Officer

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David Thompson Officer)

Berlin Chief Financial Officer (Principal Financial March 7, 2025

Berlin Officer and Principal Accounting Officer)

/s/ Brandon Hill

Chief Financial Officer (Principal Financial March 9, 2026

Officer and Principal Accounting Officer)

/s/ Douglas Bech Director March 9, 2026

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Critical Audit Matter Description

The Company’s evaluation of investments in real estate for impairment involves an initial assessment of each real estate asset to determine whether events or changes in circumstances exist that may indicate that the carrying amounts of each investment in real estate is no longer recoverable.

When events or changes in circumstances exist, the Company evaluates its investments in real estate for impairment by comparing undiscounted future cash flows expected to be generated over the life of each asset to the respective carrying amount.

If the carrying amount of an asset exceeds the undiscounted future cash flows, an analysis is performed to determine the fair value of the asset.

For those investments in real estate where indications of impairment have been identified, the Company makes significant estimates and assumptions to determine whether the undiscounted future cash flows expected to be generated over the life of the asset exceed the carrying amount of the investment in real estate.

Management concluded that the carrying value of the assets

were recoverable and therefore it was not required to perform an analysis of the fair value of the assets.

Estimates and assumptions used for the undiscounted future cash flows of the properties include rental rates, lease-up period, growth rates, estimated holding periods, capital expenditures and terminal capitalization rates.

We identified the process for evaluating real estate impairment and certain assumptions used for the undiscounted future cash flows of the properties as a critical audit matter because of (1) the significant assumptions management makes when determining whether events or changes in circumstances have occurred indicating that the carrying amounts of investments in real estate assets may not be recoverable and (2) for those investments in real estate where indications of impairment have been identified, the significant estimates and assumptions management makes to evaluate whether the undiscounted future cash flows expected to be generated over the life of the asset exceed the carrying amount of the property, including those related to rental rates, lease-up period, growth rates, estimated holding period, capital expenditures and terminal capitalization rates.

This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate (1) whether management appropriately identified impairment indicators and (2) the reasonableness of management’s assumptions related to rental rates, lease-up period, growth rates, estimated holding period, capital expenditures and terminal capitalization rates for the undiscounted future cash flows analysis.

The Company monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable.

When events or changes in circumstances are present, the Company evaluates its real estate assets for impairment by comparing the undiscounted cash flows expected to be generated by the assets to the respective carrying amount.

If the undiscounted cash flows are less than the carrying amount of the assets, an impairment is recognized to the extent the carrying amount of the assets exceeds the estimated fair value of the assets.

For those real estate assets where indications of impairment have been identified, the Company makes significant assumptions to determine whether the undiscounted cash flows exceed the carrying amount of the assets.

Assumptions used for the undiscounted cash flows include rental rates, growth rates, estimated holding periods, and terminal capitalization rates.

We identified the process for evaluating real estate impairment and certain assumptions used for the undiscounted cash flows of the real estate assets as a critical audit matter because (1) management makes significant assumptions when determining whether events or changes in circumstances have occurred indicating that the carrying amounts of real estate assets may not be recoverable and (2) for those real estate assets where indications of impairment have been identified, management makes significant assumptions related to certain inputs in the undiscounted cash flow models, including rental rates, growth rates, estimated holding periods, and terminal capitalization rates.

This required a high degree of auditor judgment and an increased extent of effort, including the need to involve fair value specialists, when performing audit procedures to evaluate (1) whether management appropriately identified indications of impairment and (2) the reasonableness of management’s assumptions used within the undiscounted cash flow models.

How the Critical Audit Matter Was Addressed in the Audit

• We tested the effectiveness of controls over (1) management’s identification of possible circumstances that may indicate that the carrying amounts of investments in real estate are no longer recoverable and (2) the undiscounted cash flows, including review of significant inputs.

• We tested the effectiveness of controls over (1) management’s identification of circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable and (2) the undiscounted cash flow models, including review of significant assumptions.

• We evaluated the accuracy, relevance, and completeness of changes in circumstances that could indicate the carrying amounts of real estate assets may not be recoverable.

• We performed corroborating inquiries with management, including property accounting, leasing and portfolio oversight to determine whether factors were identified in the current period that may be an impairment indicator, and corroborated these inquiries through review of third-party market reports and inspection of meeting minutes of the Board of Directors.

• We performed corroborating inquiries with management, including property accounting, leasing and portfolio oversight to determine whether factors were identified in the current period that may be an indication of impairment, and corroborated these inquiries through review of third-party market reports and inspection of meeting minutes of the Board of Directors.

In addition, we evaluated whether factors were identified in the current period that may result in a change to assumptions used in the undiscounted cash flow models.

• We selected certain office and multifamily properties to evaluate whether the assumptions used in the Company’s undiscounted model relating to rental rates, lease-up period, growth rates, estimated holding period, capital expenditures and terminal capitalization rates were consistent with evidence obtained in other areas of the audit, including actual historical results and external market information.

• With the assistance of our fair value specialists, we evaluated the inputs included in the undiscounted cash flow analysis for our selected office and multifamily properties, including estimated rental rates, lease-up periods, growth rates, holding period, capital expenditures and terminal capitalization rates by (1) evaluating the source of information and assumptions used by management (2) comparing the inputs included in the undiscounted cash flow analysis to market data and (3) testing the mathematical accuracy of the undiscounted cash flow analysis.

• We selected certain properties to evaluate whether the assumptions used in the Company’s undiscounted cash flow models relating to rental rates, growth rates, estimated holding periods, and terminal capitalization rates were consistent with evidence obtained in other areas of the audit, including actual historical results and external market information.

• With the assistance of fair value specialists, we evaluated certain assumptions included in the undiscounted cash flow models for selected properties, by (1) evaluating the source of information and assumptions used by management (2) comparing the assumptions included in the undiscounted cash flow models to market data and (3) testing the mathematical accuracy of the undiscounted cash flow models.

/s/ Deloitte & Touche LLP

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Other assets 4,732 9,797

Assets held for sale, net (Note 5) 65,859 —

TOTAL ASSETS $ 859,187 $ 889,555

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Other liabilities 11,406 10,488

Liabilities associated with assets held for sale, net (Note 5) 21,966 —

Total liabilities 592,938 562,492

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24,508,664 and 25,045,401 shares authorized as of December 31, 2025 and December 31, 2024, respectively;

913,630 and 913,590 shares issued and outstanding as of December 31, 2024, respectively and no shares issued and outstanding as of December 31, 2023;

no shares issued and outstanding as of December 31, 2025, respectively and 913,630 and 913,590 shares issued and outstanding as of December 31, 2024;

liquidation preference of $ 25.00 per share, subject to adjustment

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Loss on early extinguishment of debt (Note 7) 88 1,416

Impairment of real estate (Note 3) 3,692 —

Loss on assets held for sale (Note 5) 298 —

Total Expenses 152,666 148,658

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Balances, December 31, 2023

Cumulative-effect adjustment upon adoption of ASU 2016-13 (Note 2)

91,146 $ 23 17,858,629 $ 443,829 $ 852,476 $ ( 921,925 ) $ 374,403 $ 2,366 $ 376,769

Contributions to noncontrolling interests — — — — — — — 5,002 5,002

Distributions to noncontrolling interests — — — — — — — ( 43 ) ( 43 )

Stock based compensation expense 431 — — — 220 — 220 — 220

4,888 — — — 183 — 183 — 183

Common dividends ($ 1.70 per share)

— — — — — ( 3,874 ) ( 3,874 ) — ( 3,874 )

Issuance of A1 Preferred Stock — — 4,507,292 111,520 ( 9,791 ) — 101,729 — 101,729

Redemptions of Series A1 Preferred Stock — — ( 85,096 ) ( 2,099 ) 173 ( 99 ) ( 2,025 ) — ( 2,025 )

Common dividends - stock dividend 6,738 3 — — 3,336 ( 3,339 ) — — —

Issuance of Series A1 Preferred Stock — — 853,879 21,246 ( 2,180 ) — 19,066 — 19,066

Redemption of Series A1 Preferred Stock paid in cash — — ( 88,015 ) ( 2,177 ) 191 ( 57 ) ( 2,043 ) — ( 2,043 )

Redemption of Series A1 Preferred Stock paid in Common Stock 192,698 48 ( 2,771,518 ) ( 68,617 ) 74,793 ( 8,372 ) ( 2,148 ) — ( 2,148 )

Dividends to holders of A1 Preferred Stock ($ 1.958 per share)

— — — — — ( 21,059 ) ( 21,059 ) — ( 21,059 )

Redemptions of Series D Preferred Stock — — ( 410 ) ( 10 ) — — ( 10 ) — ( 10 )

Dividends to holders of Series D Preferred Stock ($ 1.413 per share)

— — — — — ( 68 ) ( 68 ) — ( 68 )

Reclassification of Series A Preferred stock to permanent equity — — 690,171 17,161 ( 1,545 ) — 15,616 — 15,616

Redemption of Series A Preferred Stock — — ( 823,681 ) ( 20,505 ) 1,735 ( 1,412 ) ( 20,182 ) — ( 20,182 )

Redeemable preferred stock accretion — — — — — ( 755 ) ( 755 ) — ( 755 )

Redemption of Series A Preferred Stock paid in cash — — ( 941,687 ) ( 23,501 ) 2,015 ( 1,793 ) ( 23,279 ) — ( 23,279 )

Redemption of Series A Preferred Stock paid in Common Stock 175,167 45 ( 2,364,789 ) ( 58,877 ) 64,122 ( 7,503 ) ( 2,213 ) — ( 2,213 )

Dividends to holders of Series A Preferred Stock ($ 1.375 per share)

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— — — — — ( 25,175 ) ( 25,175 ) ( 575 ) ( 25,750 )

Balances, Balances, December 31, 2023

Balances, December 31, 2024

466,180 $ 119 12,546,499 $ 311,903 $ 994,973 $ ( 1,002,479 ) $ 304,516 $ 1,748 $ 306,264

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Years Ended December 31, 2025 and 2024

Common Stock Preferred Stock

Value Shares Par

Value Additional

Capital Distributions

in Excess of Earnings Total Stockholders’ Equity Non-controlling

Interests Total

Preferred Stock

Additional Distributions Total Non-

Par Par Paid - in in Excess Stockholders’ controlling Total

Shares Value Shares Value Capital of Earnings Equity Interests Equity

Balances, December 31, 2024

466,180 $ 119 12,546,499 $ 311,903 $ 994,973 $ ( 1,002,479 ) $ 304,516 $ 1,748 $ 306,264

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

Distributions to noncontrolling interests — — — — — — — ( 295 ) ( 295 )

Stock based compensation expense 34,644 2 — — 220 — 222 — 222

10,784 — — — 220 — 220 — 220

Common dividends ($ 1.70 per share)

— — — — — ( 3,874 ) ( 3,874 ) — ( 3,874 )

Common dividends - stock dividend

168,464 3 — — 3,336 ( 3,339 ) — —

Issuance of A1 Preferred Stock — — 853,879 21,246 ( 2,180 ) — 19,066 — 19,066

Redemption of Series A1 Preferred Stock paid in cash

— — ( 88,015 ) ( 2,177 ) 191 ( 57 ) ( 2,043 ) — ( 2,043 )

Par value adjustment — ( 126 ) — — 126 — — — —

Reclassification of Series A1 Preferred Stock to Permanent Equity — — 913,590 23,385 ( 2,588 ) — 20,797 — 20,797

Redemption of Series A1 Preferred Stock paid in Common Stock 1,010,063 5 ( 536,737 ) ( 13,321 ) 13,768 ( 620 ) ( 168 ) — ( 168 )

4,817,486 48 ( 2,771,518 ) ( 68,617 ) 74,793 ( 8,372 ) ( 2,148 ) — ( 2,148 )

Dividends to holders of A1 Preferred Stock ($ 1.723 per share)

— — — — — ( 15,650 ) ( 15,650 ) — ( 15,650 )

Redemption of Series D Preferred Stock 11,556 — ( 4,122 ) ( 101 ) 3 ( 4 ) ( 102 ) — ( 102 )

Dividends to holders of Series D Preferred Stock ($ 1.413 per share)

— — — — — ( 68 ) ( 68 ) — ( 68 )

Redeemable preferred stock accretion

— — — — — ( 755 ) ( 755 ) — ( 755 )

Redemption of Series A Preferred Stock paid in cash

— — ( 941,687 ) ( 23,501 ) 2,015 ( 1,793 ) ( 23,279 ) — ( 23,279 )

Redemption of Series A Preferred Stock paid in Common Stock 1,177,243 3 ( 456,345 ) ( 11,420 ) 12,542 ( 817 ) 308 — 308

4,379,099 45 ( 2,364,789 ) ( 58,877 ) 64,122 ( 7,503 ) ( 2,213 ) — ( 2,213 )

Dividends to holders of Series A Preferred Stock ($ 1.375 per share)

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2,699,686 $ 3 12,462,885 $ 310,446 $ 1,019,044 $ ( 1,064,132 ) $ 265,361 $ 888 $ 266,249

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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Depreciation and amortization, net 27,199 27,732

Gain on interest rate caps ( 463 ) ( 539 )

Loss (gain) on interest rate caps 149 ( 463 )

Gain on sale of real estate ( 679 ) —

Impairment of real estate 3,692 —

Loss on early extinguishment of debt 88 1,416

Loss on assets held for sale 298 —

Amortization of deferred debt origination costs 2,845 2,134

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Amortization of deferred costs and accretion of fees on loans receivable, net ( 344 ) ( 249 )

Write-offs of uncollectible receivables 1,263 299

Write-offs of other deferred costs

(Recoveries) write-offs of uncollectible receivables ( 1,515 ) 1,263

Write-off of other deferred costs — 491

Deferred income taxes ( 137 ) ( 36 )

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Loss from unconsolidated entities 3,760 806

Return on investment from unconsolidated entities

Loans funded, held for sale to secondary market ( 18,655 ) ( 30,191 )

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Capital expenditures ( 20,786 ) ( 23,262 )

Acquisition of real estate — ( 96,731 )

Proceeds from sale of real estate, net 1,096 33,304

Receipt of deferred key money 4,713 —

Investment in unconsolidated entity ( 1,208 ) ( 2,263 )

Return of investment from unconsolidated entity 30 1,285

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

Loans funded ( 6,218 ) ( 10,064 )

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Proceeds from revolving credit facilities, term notes and mortgages 55,504 209,746

Proceeds from SBA 7(a) loan-backed notes — 54,141

Payment of principal on secured borrowings ( 52 ) ( 1,646 )

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Payment of preferred stock dividends ( 21,959 ) ( 25,574 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

(In thousands)

Year Ended December 31,

Redemption of Preferred Stock — ( 25,373 )

Noncontrolling interests’ distributions ( 295 ) ( 43 )

Net cash provided by financing activities 13,902 63,446

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 8,640 ( 13,252 )

Noncontrolling interests’ contributions 8 —

Net cash (used in) provided by financing activities ( 4,568 ) 13,902

Decrease in cash balances included in assets held for sale ( 4,423 ) —

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 15,183 ) 8,640

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:

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Accrued capital expenditures, tenant improvements and real estate developments $ 4,747 $ 7,569

Proceeds from the sale of real estate committed but not yet received $ — $ 1,096

Other amounts due from Unconsolidated Joint Venture partners included in other assets $ 396 $ 396

Non-cash contributions to Unconsolidated Joint Venture $ — $ 8,600

Accrued deferred debt origination costs $ 362 $ 425

Accrued preferred stock offering costs $ — $ 125

Accrual of dividends payable to preferred stockholders $ 5,012 $ 5,976

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

Preferred stock offering costs offset against redeemable preferred stock $ — $ 1,420

Reclassification of Series A Preferred Stock from temporary equity to permanent equity $ 20,799 $ —

Mortgage notes assumed in connection with our acquisition of real estate $ — $ 181,318

Write-off of preferred stock deferred offering costs $ — $ 4,966

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Accrued Redeemable Preferred Stock fees $ 203 $ 186

Acquisition of noncontrolling interests $ — $ 5,002

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

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The Company primarily acquires, develops, owns and operates both premier multifamily properties situated in vibrant communities throughout the United States and Class A and creative office real assets in markets with similar business and employment characteristics to its multifamily investments.

The Company also owns one hotel in northern California and a lending platform that originates loans under the Small Business Administration (“SBA”) 7(a) loan program.

The Company also owns one hotel in northern California.

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 Global Market (“Nasdaq”) under the ticker symbol “CMCT”, and on the Tel Aviv Stock Exchange (the “TASE”) under the ticker symbol “CMCT.”

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

Unless otherwise specified, all Common Stock and per share of Common Stock amounts set forth in this Annual Report on Form 10-K have been adjusted to give retroactive effect to the Reverse Stock Split.

Any references to building square footage or number of multifamily units set forth in this Annual Report on Form 10-K are unaudited.

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, where it had previously been listed under the ticker symbol “CMCT.”

On January 6, 2025, the Company effected a 1-for-10 reverse stock split on its Common Stock, and on April 15, 2025, the Company effected a 1-for-25 reverse stock split on its Common Stock (collectively, the “Reverse Stock Splits”).

On April 14, 2025, the Company received approval from the Listing Qualifications Department of The Nasdaq Stock Market, LLC to transfer the listing of the Company’s Common Stock from the Nasdaq Global Market to the Nasdaq Capital Market.

The transfer of listing became effective on April 17, 2025.

The Nasdaq Capital Market is a continuous trading market that operates in substantially the same manner as the Nasdaq Global Market.

All companies whose securities are listed on the Nasdaq Capital Market must meet certain financial requirements and adhere to Nasdaq’s corporate governance standards.

Any references to building square footage or number of multifamily units set forth in the financial statements are unaudited.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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In addition, as of December 31, 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.

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

absorb losses and right to receive benefits.

Therefore, the Unconsolidated Joint Ventures do not qualify for consolidation.

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Tenant improvements Lesser of useful life or lease term

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

The purchase consideration of the real estate, which includes the transaction costs incurred in connection with such acquisitions, is recorded at fair value to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective relative fair values.

Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate.

Capitalized Project Costs

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Ordinary repairs and maintenance are expensed as incurred.

Recoverability of Investments in Real Estate —The Company periodically monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable.

Recoverability of Investments in Real Estate —The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable.

Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

3 unchanged sentences

These inputs require a subjective evaluation based on the specific property and market.

Changes in the assumptions could have a significant impact on whether an impairment is recognized and, if so, the estimated fair value which impacts the amount of impairment charge, if any.

Changes in the assumptions could have a significant impact on either the fair value, the amount of impairment charge, if any, or both.

Any asset held for sale is reported at the lower of the asset’s carrying amount or fair value, less costs to sell.

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

The Company did no t recognize any impairment of long-lived assets during the years ended December 31, 2024 and 2023 (Note 3).

The Company recognized impairments of long-lived assets of $ 3.7 million during the year ended December 31, 2025.

No impairment of long-lived assets was recognized during the year ended December 31, 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

Restricted Cash —The Company’s mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations.

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.

In addition, for one of the Company’s mortgage loans, rent from the Company’s tenants at the applicable property is deposited directly into a lender reserve account, from which the monthly debt service payments are disbursed to the lender and the excess funds are then disbursed to the Company.

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

unamortized acquisition discounts and premiums, retained loan discounts and reserves for expected credit losses.

Acquisition discounts or premiums, origination fees and retained loan discounts are amortized as a component of interest and other income using the effective interest method over the expected life of the respective loans.

All loans were originated pursuant to programs sponsored by the Small Business Administration (the “SBA”) under the SBA 7(a) Small Business Loan Program (the “SBA 7(a) Program”).

Pursuant to the SBA 7(a) Program, the Company sells the portion of the loan that is guaranteed by the SBA.

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 $ 7.9 million and $ 8.4 million as of December 31, 2024 and 2023, 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.

Generally, loans are charged-off when management

Restricted cash at the lending division, which had been reclassified as held for sale as of December 31, 2025 in connection with

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

determines that the Company will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means.

Interest income, included in interest and other income, on a Non-Accrual Loan is recognized on the cost recovery basis.

Current Expected Credit Losses — On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No.

2016-13, Financial Instruments-Credit Losses , and subsequent amendments (“ASU 2016-13”).

The current expected credit losses (“CECL”) required under ASU 2016-13 reflects the Company’s current estimate of potential credit losses related to the Company’s loans receivable included in the consolidated balance sheets.

The initial expected credit losses recorded on January 1, 2023 is reflected as a direct charge to distributions in excess of earnings on the Company’s consolidated statements of equity;

however, subsequent changes to CECL are recognized through net income on the Company’s consolidated statements of operations.

sale of the lending division (“First Western”) in January 2026, also included cash required to be segregated in connection with certain of the Company’s loans receivable and with its SBA 7(a) loan-backed notes.

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 30-year term of the 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 December 31, 2025, deferred key money of $ 4.7 million was presented net of accumulated amortization of $ 48,000 .

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

Loans Receivable —The Company’s loans receivable were carried at their unamortized principal balance less unamortized acquisition discounts and premiums, retained loan discounts and reserves for expected credit losses.

Acquisition discounts or premiums, origination fees and retained loan discounts were amortized as a component of interest and other income using the effective interest method over the expected life of the respective loans, or on a straight-line basis when it approximates the effective interest method.

All loans were originated pursuant to programs sponsored by the Small Business Administration (the “SBA”) under the SBA 7(a) Small Business Loan Program (the “SBA 7(a) Program”).

Pursuant to the SBA 7(a) Program, prior to the sale of our lending business in January 2026, the Company sold the portion of the loan that is guaranteed by the SBA.

Upon sale of the SBA guaranteed portion of the loans, which were accounted for as sales, the unguaranteed portion of the loan retained by the Company was 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 $ 6.9 million and $ 7.9 million as of December 31, 2025 and 2024, respectively.

A loan receivable was 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.

Generally, loans were charged-off when management determines that the Company will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means.

Interest income, included in interest and other income, on a Non-Accrual Loan were recognized on the cost recovery basis.

All loans receivable were reclassified as held for sale as of December 31, 2025.

Current Expected Credit Losses — The current expected credit losses (“CECL”) required under Accounting Standards Update (“ASU”) No.

2016-13, Financial Instruments Credit Losses, and subsequent amendments (“ASU 2016-13”) reflects the Company’s estimate of potential credit losses related to the Company’s loans receivable included in the consolidated balance sheets.

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.

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

The Company recorded a cumulative-effective adjustment to the opening distributions in excess of earnings in its consolidated statement of equity as of January 1, 2023 of $ 619,000 .

This represents a total CECL reserve transition adjustment of approximately $ 783,000 , net of a $ 164,000 deferred tax asset.

As of December 31, 2024 and December 31, 2023, the Company had a total CECL of $ 2.0 million and $ 1.7 million, respectively.

As of December 31, 2025, the Company had a no remaining CECL balance, following the reversal of $ 2.6 million of CECL related to the Company’s loans being reclassifed as held for sale during the year ended December 31, 2025 in connection with the sale of First Western.

As of December 31, 2024, the Company had a total CECL of $ 2.0 million.

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.

This method requires the Company to reference historical loan loss data across a comparable dataset and apply such loss rate to each loan investment over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe.

This method requires the Company to reference historical loan loss data across a comparable data set and apply such loss rate to each loan investment over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe.

The Company considers loans that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans.

For loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral less costs to sell and the amortized cost basis of the loan as of the measurement date.

For collateral-dependent loans with respect to which the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.

The Company may use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data.

For collateral-dependent loans with respect to which the Company determines

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.

Quarterly, the Company evaluates the risk of all loans receivable and assigns a risk rating based on a variety of factors, which are grouped as follows:

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however, the weakness or weaknesses are so extreme that significant loss potential exists in all cases;

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

5- Loss — Assets assigned this classification have no value and thus have been or are in the process of being charged off.

The Company generally assigns a risk rating of “1” to all newly originated loans (generally within one year of origination) due to lack of management experience and/or lack of adequate historical debt coverage at the origination date.

These loans likely will be classified to acceptable within two years of origination.

Deferred Rent Receivable and Charges —Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 11), deferred financing costs and other deferred costs.

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The deferred offering costs allocated to the Series A Preferred Stock and Series A Preferred Warrants were reductions to temporary equity and permanent equity, respectively, with the deferred offering costs allocated to Series A Preferred Stock being reclassified from temporary equity to permanent equity on the first anniversary of each issuance.

The Company discontinued its issuance of Series A Preferred Stock and Series D Preferred stock in June 2022.

In September 2024, the Company, at its option, redeemed 2,589,606 and 2,150,076 shares of its Series A1 Preferred Stock and Series A Preferred Stock, respectively, in shares of Common Stock and suspended its offering of Series A1 Preferred Stock.

Following the suspension of its Series A1 Preferred Stock’s offering, the Company no longer deemed it probable that future proceeds would be raised from the sale of these securities and, as a result, the Company recognized $ 5.1 million of redeemable preferred stock redemptions in its consolidated statement of operations for the year ended December 31, 2024 related to amounts that had been recorded as deferred offering costs.

Deferred financing costs related to the securing of a revolving line of credit are presented as an asset and amortized ratably over the term of the line of credit arrangement.

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.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

As of December 31, 2024 and 2023, deferred rent receivable and charges, net consist of the following:

Preferred Stock.

Following the suspension of its Series A1 Preferred Stock’s offering, the Company no longer deemed it

probable that future proceeds would be raised from the sale of these securities and, as a result, the Company recognized $ 5.1 million of redeemable preferred stock redemptions in its consolidated statement of operations for the year ended December 31, 2024 related to amounts that had been recorded as deferred offering costs.

Deferred financing costs related to the securing of a revolving line of credit are presented as an asset and amortized ratably over the term of the line of credit arrangement.

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

December 31, 2025 December 31, 2024

(in thousands)

Deferred rent receivable $ 10,850 $ 12,931

Deferred leasing costs, net of accumulated amortization of $ 5,749 and $ 11,870 , respectively

Deferred offering costs — 4,925

Deferred financing costs, net of accumulated amortization of $ 112 and $ 2,654 , respectively

Other deferred costs — 491

Deferred rent receivable and charges, net $ 18,692 $ 19,896

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As a result, beginning from June 2024 through September 2024, the Company recorded issuances of Series A1 Preferred Stock in temporary equity.

With respect to shares of Series A1 Preferred Stock issued from June 2024 through September 2024, on the first anniversary of the date of original issuance of a particular share of Series A1 Preferred Stock the Company reclassifies 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.

With respect to shares of Series A1 Preferred Stock issued from June 2024 through September 2024, on the first anniversary of the date of original issuance of each particular share of 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, lapsed on the first anniversary date.

Purchase Accounting for Acquisition of Investments in Real Estate —The Company applies the acquisition method to all acquired real estate assets.

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Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.

In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand.

Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs.

In estimating

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods.

carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand.

Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs.

In allocating the purchase consideration of the identified intangible assets and liabilities of an acquired property, above-market, below-market, and in-place lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods.

Acquired above-market and below-market leases are amortized and recorded to rental and other property income over the initial terms of the respective leases.

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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 December 31, 2024 and 2023, lease incentives of $ 3.9 million and $ 3.9 million, respectively, are presented net of accumulated amortization of $ 3.6 million and $ 3.3 million as of December 31, 2024 and 2023, respectively.

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

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.

Tenant reimbursements are recognized and presented on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant.

The Company has elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in the Company’s leases.

In addition to minimum rents, certain leases, including the Company’s parking leases with third-party operators, provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums.

Percentage rent is recognized once lessees’ specified sales targets have been met.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

For the years ended December 31, 2024 and 2023, the Company recognized rental income as follows:

Percentage rent is recognized once lessees’ specified sales targets have been met.

For the years ended December 31, 2025 and 2024, the Company recognized rental income as follows (in thousands):

Year Ended December 31,

(in thousands)

Rental and other property income

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Collectability of Future Lease Payments

The Company periodically reviews whether collection of future lease payments, including any straight-line rent, and current and future operating expense reimbursements from tenants is probable.

The Company continually reviews whether collection of future lease payments, including any straight-line rent, and current and future operating expense reimbursements from tenants is probable.

The determination of whether collectability is probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

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The Company does not use a general reserve approach.

As of December 31, 2024 and 2023, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $ 640,000 and $ 868,000 , respectively, across all operating leases.

As of December 31, 2025 and 2024, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $ 371,000 and $ 640,000 , respectively.

Revenue from lending activities

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The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer.

The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer.

Ancillary services include facilities usage and providing food and beverage.

The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time when the good or service is delivered to the customer.

The Company satisfies its performance obligation and recognizes revenues associated with

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer.

Ancillary services include facilities usage and providing food and beverage.

The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time when the good or service is delivered to the customer.

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.

The Company presents hotel revenues net of sales, occupancy, and other taxes.

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18 (in thousands):

Year Ended December 31,

(in thousands)

Hotel properties

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Net income attributable to common stockholders includes a deduction for dividends due to preferred stockholders.

Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, warrants, including the Series A Preferred Warrants and preferred stock, including the Series A1 Preferred Stock, Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company.

The dilutive effect of stock-based compensation awards and warrants, including the Series A Preferred Warrants, is reflected in the weighted average diluted shares calculation by application of the treasury stock method.

The dilutive effect of preferred stock, including the Series A1 Preferred Stock, Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method.

Distributions —Distributions on the Company’s Series A1 Preferred Stock, Series A Preferred Stock, Series D Preferred Stock, Series L Preferred Stock and Common Stock are recorded when they are authorized by its Board of Directors and declared by the Company.

Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, preferred stock, including the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company.

The dilutive effect of stock-based compensation awards is reflected in the weighted average diluted shares calculation by application of the treasury stock method.

The dilutive effect of preferred stock, including the Series A1 Preferred Stock, Series A Preferred Stock, and Series D Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

Distributions —Distributions on the Company’s Series A1 Preferred Stock, Series A Preferred Stock, Series D Preferred Stock, and Common Stock are recorded when they are authorized by its Board of Directors and declared by the Company.

Assets Held for Sale and Discontinued Operations —In the ordinary course of business, the Company may periodically enter into agreements to dispose of its assets.

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Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell.

In addition, if the Company were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition.

In addition, if the Company were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift that has or will have a major effect on the Company’s operations and financial results, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition.

As of December 31, 2025, the Company had reclassifed the assets and liabilities of First Western as held for sale .

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

All derivatives are recognized on the balance sheet at their estimated fair value.

On the date that we enter into a derivative contract, we designate the derivative as a fair value hedge, a cash flow hedge, a foreign currency fair value hedge, a hedge of a net investment in a foreign operation, or a trading or non-hedging instrument.

On the date that we enter into a derivative contract, we designate the derivative as a fair value hedge, a cash flow hedge, a foreign currency fair value or cash flow hedge, a hedge of a net investment in a foreign operation, or a trading or non-hedging instrument.

Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument.

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

See Note 8 for further disclosures about the Company’s derivative financial instruments and hedging activities.

See Note 8 for further disclosures about our derivative financial instruments and hedging activities.

Income Taxes —The Company has elected to be taxed as a REIT under the provisions of the Code.

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If incurred, the Company’s policy for recording interest and penalties associated with audits will be to record such items as a component of general and administrative expense.

Penalties, if incurred, will be recorded in general and administrative expense and interest paid or received will be recorded in interest expense or interest income, respectively, in the Company’s consolidated statements of operations.

ASC 740, Income Taxes , provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements.

ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority.

Tax positions not deemed to meet the more-likely-than-not threshold would be

Penalties, if incurred, will be recorded in general and

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

recorded as a tax benefit or expense in the current period.

administrative expense and interest paid or received will be recorded in interest expense or interest income, respectively, in the Company’s consolidated statements of operations.

ASC 740, Income Taxes , provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements.

Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period.

The Company has reviewed all open tax years and concluded that the application of ASC 740 resulted in no material effect to its consolidated financial position or results of operations.

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

As previously disclosed, we completed the sale of our lending business on January 21, 2026, and, as a result, our lending business will cease to be one of our reportable segments in future periods.

The products for the Company’s office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental.

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The amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025.

The Company does not believe the adoption of ASU 2023-05 will have a material impact on its consolidated financial statements and disclosures .

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis.

ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.

The adoption of ASU 2023-05 did not impact the Company’s financial statements .

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

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

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

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

The adoption of ASU No.

2023-07 has not impacted the Company’s financial statements but has resulted in incremental disclosures, which are included within Note 18 — Segment Reporting.

2023-09 has not impacted the Company’s financial statements but has resulted in incremental disclosures, which are included within Note 16 — Income Taxes.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

In November 2024, the FASB issued ASU No.

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

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

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

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

INVESTMENTS IN REAL ESTATE

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For the years ended December 31, 2025 and 2024, the Company recorded depreciation expense of $ 24.9 million and $ 24.9 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 the year ended December 31, 2025, one office property in Austin, Texas was deemed to be impaired, with its carrying value of $ 2.1 million being reduced to an estimated fair value of $ 1.9 million, and one multifamily development site, currently being operated as a parking lot, in Oakland, California was deemed to be impaired, with its carrying value of $ 14.7 million being reduced to an estimated fair value $ 11.2 million, collectively resulting in impairment charges of $ 3.7 million during the year ended December 31, 2025.

The Company recorded no impairment charges during the year ended December 31, 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 year ended December 31, 2025.

2025 Transactions —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 year ended December 31, 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.

2024 Transactions —There were no acquisitions or dispositions during the year ended December 31, 2024.

2023 Transactions — During the year ended December 31, 2023, the Company acquired an interest in the following properties from subsidiaries indirectly wholly owned by a fund that is managed by affiliates of CIM Group.

The acquisitions were accounted for as asset acquisitions.

Asset Date of Interest Purchase

Property Type Acquisition Units Acquired (1)

(in thousands)

Channel House Multifamily (2)

January 31, 2023 333 89.4 % $ 134,615

F3 Land Site Multifamily (2)

January 31, 2023 N/A 89.4 % $ 250

466 Water Street Land Site Multifamily (2)

January 31, 2023 N/A 89.4 % $ 2,500

1150 Clay Multifamily (3)

March 28, 2023 288 98.1 % $ 145,500

(1) As of December 31, 2024, the Company’s ownership interests in C hannel House, F3 Land Site, and 466 Water Street Land Site had changed to 94.0 %, 93.4 %, and 91.0 %, respectively, as result of additional contributions made to the entities by the Company subsequent to the applicable initial acquisition.

(2) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of these properties totaled $ 37,000 , which are not included in the purchase prices above.

The building at Channel House also includes approximately 1,864 square feet of retail space.

The F3 Land Site is c urrently being utilized as a surface parking lot and being evaluated for future development options including hotel development, but there were no formal plans in place to begin development as of December 31, 2024.

(3) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $ 149,000 , which are not included in the purchase price above.

The building also includes approximately 3,968 square feet of retail space .

Please refer to “Investments in Unconsolidated Entities” (Note 4) for information on the Company’s real estate acquisitions through its investments in Unconsolidated Joint Ventures.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

The Company sold an interest in the following property during the year ended December 31, 2023.

Asset Date of Interest Sales Gain on

Property Type Sale Sold Price Sale

(in thousands)

4750 Wilshire Boulevard (1)

Multifamily / Office

February 17, 2023 80.0 % $ 34,400 $ 1,104

(1) The Company sold 80 % of its interest in 4750 Wilshire Boulevard (excluding a vacant land parcel which was not included in the sale) to co-investors with whom the Company formed the 4750 Wilshire JV (defined in Note 4).

At the acquisition date, the Company received net proceeds of $ 16.7 million and recorded a receivable of $ 17.6 million, all of which has been collected as of December 31, 2024.

Additionally, as of December 31, 2024, the Company has a receivable of $ 396,000 due from the 4750 Wilshire JV included in other assets on the Company’s consolidated balance sheet related to development costs incurred by the Company at 4750 Wilshire Boulevard prior to the sale of 80 % of its interest in the property to the 4750 Wilshire JV.

The Company owns a 20 % interest in the 4750 Wilshire JV and accounts for its investment as an equity method investment.

The results of operations of the properties the Company acquired have been included in the consolidated statements of operations from the date of acquisition.

The following table summarizes the purchase price allocation of the aforementioned acquisitions during the years ended December 31, 2023.

Year Ended December 31,

(in thousands)

Land $ 36,613

Land improvements 4,523

Buildings and improvements 206,717

Furniture, fixtures, and equipment 8,140

Acquired in-place leases (1) 27,210

Acquired above-market leases (2) 71

Acquired below-market leases (3) ( 223 )

Net assets acquired $ 283,051

(1) The amortization period for the in-place leases acquired during the year ended December 31, 2023 was approximately 6 months at the date of acquisition.

(2) The amortization period for the above-market leases acquired during the year ended December 31, 2023 was approximately 7 months at the date of acquisition.

(3) The amortization period for the below-market leases acquired during the year ended December 31, 2023 was approximately 5 months at the date of acquisition.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

INVESTMENT IN UNCONSOLIDATED ENTITIES

The following table details the Company’s equity method investments in the Unconsolidated Joint Venture.

The following table details the Company’s equity method investments in the Unconsolidated Joint Ventures.

See Note 2 - Basis of Presentation and Summary of Significant Accounting Policies (dollars in thousands):

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1910 Sunset Boulevard (1)

Office / Multifamily (Development)

Office / Multifamily

Los Angeles, CA February 11, 2022 44.2 % $ 12,941 $ 12,898

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(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) has completed construction 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.

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As of December 31, 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.

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 (the “1910 Sunset Office Building”) 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.

In September 2022, the 1910 Sunset JV obtained financing through a mortgage loan of $ 23.9 million secured by the office property (the “1910 Sunset Mortgage Loan”).

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 $ 658,000 as of December 31, 2024 and total borrowing availability of $ 9.4 million, subject to additional equity contribution requirements).

As of December 31, 2025, the 1910 Sunset JV completed its project to build 36 multifamily units on the 1915 Park Avenue land parcel adjacent to the office building (the “1915 Park Project”) and began leasing during the fourth quarter.

The 1910 Sunset JV financed 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 $ 6.8 million as of December 31, 2025 and total borrowing availability of $ 9.4 million).

As of December 31, 2025, the 1910 Sunset JV had incurred total costs of $ 12.7 million in connection with the 1915 Park Project.

The Company recorded a loss of $ 825,000 related to its investment in the 1910 Sunset JV during the year ended December 31, 2024 and loss of $ 2.4 million during the year ended December 31, 2023.

The Company’s investment in the 1910 Sunset JV was $ 12.9 million and its ownership percentage remained unchanged as of December 31, 2024.

Beginning on October 1, 2025, in connection with the 1910 Sunset JV’s commencement of leasing at the 1915 Park Project, the Company began reporting its share of the income from the operations of the 1915 Park Project in its multifamily segment, while income from the operations of the 1910 Sunset Office Building continue to be reported in its office segment.

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).

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In addition, the Company may earn incentive fees based on the performance of 4750 Wilshire after the conversion.

The Company recorded a loss of $ 597,000 related to its investment in the 4750 Wilshire JV during the year ended December 31, 2024 and income of $ 1.8 million during the year ended December 31, 2023 in the consolidated statements of operations.

The Company’s investment in the 4750 Wilshire JV was $ 8.6 million as of December 31, 2024.

1902 Park Avenue — In February 2023, the Company and a CIM-managed interval fund (the “1902 Park JV Partner”) purchased a multifamily property in the Echo Park neighborhood of Los Angeles, California for a gross purchase price of $ 19.1 million (excluding transaction costs) (the “1902 Park JV”), with the Company owning a 50 % interest.

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

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

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

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

The Company recorded a loss of $ 548,000 related to its investment in the 1902 Park JV during the year ended December 31, 2024 and income of $ 156,000 during the year ended December 31, 2023 in the consolidated statements of operations.

The Company’s investment in the 1902 Park JV was $ 5.7 million as of December 31, 2024.

Pursuant to the co-investment agreement, the 1902 Park JV pays an ongoing management fee to the Company.

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

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

The Company recorded income of $ 1.2 million related to its investment in the 1015 N Mansfield JV during the year ended December 31, 2024 and income of $ 13,000 during the year ended December 31, 2023 in the consolidated statements of operations.

The Company’s investment in the 1015 N Mansfield JV was $ 6.4 million as of December 31, 2024.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

The Company recorded a loss of $ 3.8 million and $ 806,000 related to its investment in the Unconsolidated Joint Ventures during the years ended December 31, 2025 and 2024, respectively.

LOANS RECEIVABLE

Loans receivable consist of the following:

December 31, 2024

(in thousands)

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Loans receivable, net $ 56,210

As of December 31, 2025, all loans receivable balances were reclassified as held for sale.

See Assets and Liabilities Held for Sale, included later in this footnote, for more detail.

SBA 7(a) Loans Receivable, Subject to Credit Risk —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were retained by the Company.

SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

securitization transaction.

The proceeds received from the transfer were reflected as loan-backed notes payable (Note 7).

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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 December 31, 2024 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 period end pursuant to ASU 2016-13.

Refer to Note 2 for further discussion of CECL.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

The following table presents the activity in the Company’s CECL for the year ended December 31, 2024 (dollar amounts in thousands):

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

Loans Receivable

Allowance for credit losses as of December 31, 2023 $ 1,680

Transition adjustment on January 1, 2023 783

Net adjustment to reserve for expected credit losses 352

Current expected credit losses as of December 31, 2023

Allowance for credit losses as of December 31, 2024 2,032

Net adjustment to reserve for expected credit losses 525

Current expected credit losses as of December 31, 2024

Reversal of CECL balance related to loans reclassified as held for sale ( 2,557 )

Allowance for credit losses as of December 31, 2025 $ —

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 year ended December 31, 2024, the Company recorded an increase of $ 352,000 in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations, bringing the total CECL to $ 2.0 million as of December 31, 2024.

During the year ended December 31, 2023, the Company recorded a decrease of $ 124,000 in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations, and recorded a decrease due to write-offs of $ 85,000 .

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.

Each quarter, the Company assesses the risk factors of each loan, and assigns a risk rating based on several factors.

Factors considered in the assessment include, but are not limited to, loan and credit structure, current LTV ratio, debt yield, collateral performance, and the quality and condition of the sponsor, borrower, and guarantor(s).

Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies.

During the year ended December 31, 2025, the Company recorded an increase of $ 525,000 in its CECL related to its loans receivable prior to its CECL balance of $ 2.6 million reversed as a result of the Company’s loans receivable being reclassified as held for sale at December 31, 2025.

Such amounts were recorded in general and administrative expenses in the consolidated statement of operations.

During the year ended December 31, 2024, the Company recorded an increase of $ 352,000 , respectively, in its CECL related to its loans receivable, which was recorded in general and administrative expenses in the consolidated statement of operations.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (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 December 31, 2024 by year of origination, loan type, and risk rating (dollar amounts in thousands):

Amortized Cost of Loans Receivable by Year of Origination

As of December 31, 2024

Number of Loans 2024 2023 2022 2021 2020 Prior Total

Loans by internal risk rating:

1 111 $ 9,690 $ 5,401 $ 4,458 $ 6,143 $ 839 $ 9,310 $ 35,841

2 49 328 4,065 3,987 2,806 1,846 5,509 $ 18,541

3 1 — — — 439 — — $ 439

4 1 — 909 — — — — $ 909

5 — — — — — — — $ —

Total 162 $ 10,018 $ 10,375 $ 8,445 $ 9,388 $ 2,685 $ 14,819 $ 55,730

SBA 7(a) loans receivable, subject to secured borrowings (1)

Deferred capitalized costs, net 1,129

Current expected credit losses

Total loans receivable, net $ 56,210

Weighted average risk rating 1.3

____________________

(1) The Company does not assign a risk rating to its SBA 7(a) loans receivable that are subject to secured borrowings or the government guaranteed portion of loans held for sale.

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

As of December 31, 2024 and 2023, the Company’s loans subject to credit risk were 99.5 % and 100.0 %, respectively, concentrated in the hospitality industry.

As of December 31, 2024 and 2023, 92.3 % and 99.3 %, 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 December 31, 2024 and 2023, $ 4.8 million and $ 1.3 million, respectively, of loans subject to credit risk were classified in substandard categories.

Assets and Liabilities Held for Sale

As previously announced on November 12, 2025, the Company and First Western SBLC, LLC, a Florida limited liability company (formerly known as First Western SBLC, Inc.) and an indirect wholly owned subsidiary of the Company (“First Western”), entered into a membership interest purchase agreement, dated as of November 6, 2025 (the “Membership Interest Purchase Agreement”), with PG FR Holding, LLC, a Delaware limited liability company (the “Buyer”).

The closing (the “Closing”) of the transactions contemplated by the Membership Interest Purchase Agreement (the “Transactions”) occurred on January 21, 2026.

As of December 31, 2025, the Company classified the assets and liabilities of First Western as held for sale.

The following is the detail of the carrying amounts of assets and liabilities classified as held for sale on the consolidated balance sheets as of December 31, 2025:

December 31, 2025

Restricted cash $ 4,423

Loans receivable, net (1) 54,213

Accounts receivable, net 633

Other intangible assets (2) 2,957

Other assets 3,633

Total assets held for sale $ 65,859

Debt, net (3) $ 17,330

Accounts payable and accrued expenses 2,508

Other liabilities 2,128

Total liabilities associated with assets held for sale $ 21,966

(1) Loans receivable, net as of December 31, 2025 consisted of total SBA 7(a) loans receivable of $ 53.2 million and net deferred capitalized costs of $ 1.0 million.

Upon the reclassification of First Western to held for sale, the CECL balance related to the loans receivable was reversed.

The loans receivable were subsequently written down to their estimated fair value (based on the contractual sales price) less costs to sell, resulting in a loss on assets held for sale of $ 298,000 for the year ended December 31, 2025.

Following the loss on assets held for sale, as of December 31, 2025, the aggregate net assets and liabilities of First Western were recorded at fair value, less costs to sell.

(2) Other intangible assets as of December 31, 2025 represented First Western’s trade name and SBA license, with an aggregate carrying value of $ 3.0 million.

(3) Debt, net as of December 31, 2025 consisted of the following:

Secured borrowings – government guaranteed loans of $ 1.3 million, along with net unamortized premiums of $ 19,000 , and SBA 7(a) loan-backed notes of $ 16.4 million, net of deferred debt origination costs of $ 402,000 .

There were no assets or liabilities classified as held for sale as of December 31, 2024.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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Intangible assets:

Acquired in-place leases, net of accumulated amortization of $ 5,195 and $ 4,821 , respectively, both with an average useful life of 6 years, respectively

Acquired above-market leases, net of accumulated amortization of $ 36 and $ 30 , respectively, both with an average useful life of 7 years

Acquired in-place leases, net of accumulated amortization of $ 1,874 and $ 5,195 , respectively, with an average useful life of 2 and 6 years, respectively.

Acquired above-market leases, net of accumulated amortization of $ 0 and $ 36 , respectively, with an average useful life of 0 and 7 years, respectively.

Trade name and license (1)

Total intangible assets, net $ 439 $ 3,568

(1) The trade name and license was reclassified to held for sale as of December 31, 2025.

Amortization of the acquired above-market leases is recorded as a reduction to rental and other property income, and amortization of the acquired in-place leases is included in depreciation and amortization in the accompanying consolidated statements of operations.

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Acquired in-place lease amortization $ 171 $ 374

Acquired below-market lease amortization $ — $ 243

A schedule of future amortization and accretion of acquired intangible assets and liabilities as of December 31, 2025, is as follows:

Acquired Acquired

Above-Market In-Place

Years Ending December 31, Leases Leases

Years Ending December 31, Leases

(in thousands)

2025 $ 1 $ 170

Thereafter — —

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

3 unchanged sentences

During the Year Ended December 31,

Balances as of December 31, 2023 Debt Issuances & Assumptions Repayments (1) Accretion & (Amortization) Balances as of December 31, 2024

Balances as of December 31, 2024 Debt Issuances & Assumptions Repayments (1) Accretion & (Amortization) Reclassified to Held for Sale Balances as of December 31, 2025

Mortgages Payable:

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Total Secured Borrowings—Government Guaranteed Loans 1,383 — ( 52 ) ( 3 ) ( 1,328 ) —

Lending division credit facility — 11,895 ( 1,446 ) — — 10,449

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

6 unchanged sentences

Total Debt, Net $ 505,732 $ 53,533 $ ( 34,988 ) $ 2,821 $ ( 17,330 ) $ 509,768

(1) The write-off of $ 275,000 of deferred debt issuance costs associated with the 2022 Credit Facility Term Loan resulting from the early extinguishment of debt during incurred during the year ended December 31, 2024 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 year ended December 31, 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 December 31, 2024, the Company’s fixed rate mortgages payable had fixed interest rates of 4.14 %, 6.25 % and 7.41 % per annum, with payments of interest only and initial maturity dates of July 1, 2026, June 7, 2025 and January 11, 2030, respectively.

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

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 December 31, 2024, the Company’s variable rate mortgages payable had a variable interest rate of SOFR plus 3.36 % and SOFR plus 4.35 %, with monthly payments of interest only, with an initial maturity date of July 7, 2025 and January 1, 2027.

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

As of December 31, 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 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 $ 66.3 million as of December 31, 2025 maturing on June 7, 2026 (the “1150 Clay Mortgage”), the Company executed the final one-year extension option under the mortgage in June 2025.

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

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

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

In regards to the mortgage payable with a balance of $ 97.1 million as of December 31, 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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

The Company has been in discussions with the lender under the Channel House Mortgage, which is non-recourse and has no cross-collateral provisions and is secured by Channel House (a multifamily property in Oakland, California), to restructure the terms of the mortgage, as the Company does not expect the property will meet certain conditions that are required in order for the Company to exercise the option to extend the Channel House Mortgage beyond July 7, 2025.

There can be no assurance that such restructuring will occur.

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

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.

As of December 31, 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 (with three one-year extension options), 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 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 $ 81.0 million as of December 31, 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.

Although the Company believes it is likely it will be able to refinance the Channel House Mortgage prior to January 31, 2027, there can be no assurance that such refinancing will occur.

If the Company and the lender under the Channel House 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.

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 December 31, 2024, the Company’s secured borrowings-government guaranteed loans included $ 0.4 million 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 8.71 % at December 31, 2024, and $ 1.0 million of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 6.35 % at December 31, 2024.

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

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

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

As of December 31, 2024, the variable interest rate was 7.29 %.

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

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

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

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

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

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

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

As of December 31, 2024 and 2023, $ 0 and $ 53.0 million, respectively, was available for future borrowings.

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

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

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

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

Among other restrictions, the First Modification Agreement also prohibited subsidiaries of the Company that own properties that secured the 2022 Credit Facility from making any distributions to its parent entities.

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

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

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

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

In addition, the Fourth Modification Agreement changed the maturity date of the facility to January 31, 2025,

As of December 31, 2025, the Company’s secured borrowings-government guaranteed loans included $ 337,000 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 7.96 % at December 31, 2025, and $ 1.0 million of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.60 % at December 31, 2025.

Secured borrowings—government guaranteed loans were reclassified as held for sale as of December 31, 2025, and were included in the sale of First Western, which closed in January 2026.

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.

The Lending Division Revolving Credit Facility bore interest at (i) the base rate plus 2.00 % or (ii) SOFR plus 3.00 %, at the borrower’s election and, as of December 31, 2025, had an effective interest rate of 6.79 %.

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.

As previously announced on November 12, 2025, the Company and First Western entered into the Membership Interest Purchase Agreement with the Buyer.

The Closing contemplated by the Membership Interest Purchase Agreement occurred on January 21, 2026.

At the Closing, Buyer purchased from the Company all of the issued and outstanding equity interests of First Western SBLC, LLC, and the remaining balance of $ 10.5 million under the Lending Division Revolving Credit Facility was paid in full, resulting in the termination of the Lending Division Revolving Credit Facility.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

subject to a 2-month extension option.

Such extension option was executed on January 31, 2025, pursuant to an additional modification agreement to the 2022 Credit Facility (the “Fifth Modification Agreement”), as described under “Subsequent Events.”

The event of default under the 2022 Credit Facility as of December 31, 2024 allows lenders under the 2022 Credit Facility to, among other remedies, declare the unpaid principal amount of all outstanding loans, and all interest accrued and unpaid thereon, to be immediately due and payable.

Management plans to address such default by further modifying the 2022 Credit Facility and/or refinancing an additional office property in Austin, Texas (the “Austin Refinancing”).

As the Company has reduced the outstanding borrowings under the 2022 Credit Facility from $ 169.3 million to $ 15.0 million during December 2024 in connection with the Refinancings, Management expects the proceeds from the Austin Refinancing will be more than sufficient to repay all amounts outstanding under the 2022 Credit Facility, with the remaining proceeds to be used for general corporate purposes.

Management believes its plan to repay amounts outstanding under the 2022 Credit Facility is probable based on the favorable loan-to-value ratio (“LTV”) of the property associated with the Austin Refinancing.

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.

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

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

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

In connection with termination of the 2022 Credit Facility, the Company recorded a loss on early extinguishment of debt during the year ended December 31, 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.

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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).

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.

The SBA 7(a) loan-backed notes mature on March 20, 2048, with monthly payments due as payments on the collateralized loans are received.

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

As of December 31, 2024, the variable interest rate was 7.40 %.

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 $ 2.4 million as of December 31, 2024.

The SBA 7(a) Loan-Backed Notes were 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.

The SBA 7(a) Loan-Backed Notes were reclassified as held for sale as of December 31, 2025, and were included in the sale of First Western, which closed in January 2026.

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 December 31, 2024 and 2023, accrued interest and unused commitment fees payable of $ 1.1 million and $ 1.8 million, respectively, are included in accounts payable and accrued expenses.

As of December 31, 2025 and December 31, 2024, accrued interest and unused commitment fees payable of $ 1.8 million and $ 1.1 million, respectively, are included in accounts payable and accrued expenses.

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

Years Ending December 31, Mortgages Payable (1)

Secured Borrowings Principal (2)

2022 Credit Facility Other (2) (3)

Lending Division Revolving Credit Facility (2)

Junior Subordinated Notes

(in thousands)

3 unchanged sentences

2030 105,000 — — 105,000

2029 — 119 — — 119

Thereafter — — 27,070 27,070

$ 476,959 $ 10,449 $ 27,070 $ 514,478

(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.

In regards to the $ 81.0 million Channel House Mortgage, which matures on January 31, 2027, see the discussion under Variable Rate Mortgages Payable.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

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

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

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

(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.

The Company’s estimate of their repayment is based on scheduled payments on the underlying loans.

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

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

(2) The Lending Division Revolving Credit Facility was repaid in full and terminated in January 2026.

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 agreement as of December 31, 2024 (dollar amounts in thousands):

Outstanding Notional Fair Value of Assets as of

Balance Sheet Amount as of Strike Effective Maturity December 31,

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

Outstanding Notional Fair Value of Assets

Balance Sheet Amount as of Strike Effective Maturity as of

Location December 31, 2025 Rates (1)

December 31, 2025

Interest Rate Caps

4 unchanged sentences

(1) The index used for the Company’s interest rate cap agreement is 1-Month Term SOFR.

Additional disclosures related to the fair value of the Company’s derivative instrument are included in Note 13.

The notional amount under the derivative instrument is an indication of the extent of the Company’s involvement in such instrument but does not represent exposure to credit, interest rate or market risks.

Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument.

Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 13.

The notional amount under the derivative instruments are an indication of the extent of the Company’s involvement in the instruments, but does not represent exposure to credit, interest rate or market risks.

Accounting for changes in the fair value of a derivative instruments depends on the intended use and designation of the derivative instrument.

The Company has an interest rate cap that is used to manage exposure to interest rate movements but does not meet the requirements to be designated as a hedging instrument.

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 year ended December 31, 2024 and 2023, the Company recorded an unrealized loss of $ 463,000 and $ 539,000 , respectively, which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

During the year ended December 31, 2025, the Company recorded an unrealized loss of $ 149,000 , which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

During the year ended December 31, 2024, the Company recorded an unrealized loss of $ 463,000 , which was included in interest expense on the accompanying consolidated statements of operations related to its interest rate caps.

STOCK-BASED COMPENSATION PLANS

11 unchanged sentences

Balance, December 31, 2025 34,644 $ 6.35

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

(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 Stoc k in the amount of $ 220,000 and $ 183,000 for the years ended December 31, 2024 and 2023, respectively.

The Company recorded compensation expense related to these restricted shares of Common Stock in the amount of $ 220,000 for both the years ended December 31, 2025 and 2024.

As of December 31, 2025, there was $ 128,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized ratably over the remaining vesting period.

1 unchanged sentence

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 December 31, 2024 were included in the computation of diluted EPS because they had no dilutive effect.

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

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

1 unchanged sentence

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (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 years ended December 31, 2025 and 2024:

11 unchanged sentences

$ ( 67.08 ) $ ( 431.43 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

REDEEMABLE PREFERRED STOCK

4 unchanged sentences

Balances, December 31, 2023 10,378,343 $ 256,935 7,431,839 $ 185,704 48,447 $ 1,190 17,858,629 $ 443,829

Issuances of A1 Preferred Stock 4,507,292 111,520 — $ — — — 4,507,292 111,520

Redemption of Series A1 Preferred Stock

( 85,096 ) ( 2,099 ) — — — — ( 85,096 ) ( 2,099 )

Redemption of Series D Preferred Stock — — — — ( 410 ) ( 10 ) ( 410 ) ( 10 )

Reclassification of Series A Preferred stock to Permanent Equity — — 690,171 17,161 — — 690,171 17,161

Redemption of Series A Preferred Stock

— — ( 823,681 ) ( 20,505 ) — — ( 823,681 ) ( 20,505 )

Balances, December 31, 2023

10,378,343 $ 256,935 7,431,839 $ 185,704 48,447 $ 1,190 17,858,629 $ 443,829

Issuances of A1 Preferred Stock 853,879 $ 21,246 — $ — — $ — 853,879 $ 21,246

Issuance of Series A1 Preferred Stock 853,879 21,246 — — — — 853,879 21,246

Redemption of Series A1 Preferred Stock paid in cash ( 88,015 ) ( 2,177 ) — — — — ( 88,015 ) ( 2,177 )

( 88,015 ) ( 2,177 ) — — — — ( 88,015 ) ( 2,177 )

Redemption of Series A1 Preferred Stock paid in Common Stock ( 2,771,518 ) ( 68,617 ) — — — — ( 2,771,518 ) ( 68,617 )

( 2,771,518 ) ( 68,617 ) — — — — ( 2,771,518 ) ( 68,617 )

Redemption of Series A Preferred Stock paid in cash — — ( 941,687 ) ( 23,501 ) — — ( 941,687 ) ( 23,501 )

— — ( 941,687 ) ( 23,501 ) — — ( 941,687 ) ( 23,501 )

Redemption of Series A Preferred Stock paid in Common Stock — — ( 2,364,789 ) ( 58,877 ) — — ( 2,364,789 ) ( 58,877 )

— — ( 2,364,789 ) ( 58,877 ) — — ( 2,364,789 ) ( 58,877 )

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

Redemption of Series A1 Preferred Stock paid in Common Stock ( 536,737 ) ( 13,321 ) — — — — ( 536,737 ) ( 13,321 )

Reclassification of Series A1 Preferred Stock to Permanent Equity 913,590 23,385 — — — — 913,590 23,385

Redemption of Series D Preferred Stock paid in common stock — — — — ( 4,122 ) ( 101 ) ( 4,122 ) ( 101 )

Redemption of Series A Preferred Stock paid in Common Stock — — ( 456,345 ) ( 11,420 ) — — ( 456,345 ) ( 11,420 )

Balances, December 31, 2025 8,749,542 $ 217,451 3,669,018 $ 91,906 44,325 $ 1,089 12,462,885 $ 310,446

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

1 unchanged sentence

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

With respect to Series A1 Preferred Stock, for shares issued in June 2024 and thereafter, in the event

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

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.

With respect to Series A1 Preferred Stock, for shares issued in June 2024 and thereafter, in the event a holder of Series A1 Preferred Stock requests redemption of such shares and such redemption takes place prior to the first anniversary of the date of original issuance, the Company is required to pay such redemption in cash.

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

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

As of December 31, 2024, the Company had made no such reclassification from temporary equity to permanent equity.

As of December 31, 2024, 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 the 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, lapsed on the first anniversary date.

As of December 31, 2025, the Company had reclassified an aggregate of $ 20.8 million in net proceeds from temporary equity to permanent equity.

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

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.

2 unchanged sentences

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.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

If the net proceeds from the issuance of shares of Series A1 Preferred Stock are less than the redemption value of such shares at the time they were issued, or if the redemption value of such shares subsequently becomes greater than the carrying value of such shares, an adjustment is recorded to increase the carrying amount of such shares to their redemption value as of the balance sheet date.

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

The Company recorded redeemable preferred stock deemed dividends related to such adjustments of $ 755,000 during the year ended December 31, 2024 and no deemed dividends during the year ended December 31, 2023.

The Company recorded no redeemable preferred stock deemed dividends related to such adjustments during the year ended December 31, 2025 and 755,000 during the year ended December 31, 2024.

As of December 31, 2025, there were 8,749,542 shares of Series A1 Preferred Stock outstanding and 3,491,336 shares of Series A1 Preferred Stock had been redeemed.

Of the 3,491,336 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).

During the year ended December 31, 2024, the Company, 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, for the year ended December 31, 2024, 181,912 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 December 31, 2025, the Company, 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 December 31, 2025, 718,649 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 1,202,761 shares of Common Stock.

4 unchanged sentences

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

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

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,

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

Series A Preferred Warrants, Series A1 Preferred Stock and Series D Preferred Stock.

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

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

1 unchanged sentence

Of the 5,151,320 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.

During the year ended December 31, 2024, the Company, 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, for the year ended December 31, 2024, 214,713 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 December 31, 2025, the Company, 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 December 31, 2025, 671,058 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 1,352,410 shares of Common Stock.

Series D Preferred Stock —From February 2020 through June 2022, the Company conducted a continuous public offering with respect to shares of its Series D Preferred Stock, par value $ 0.001 per share, subject to adjustment.

The selling price of the Series D Preferred Stock was $ 25.00 per share for all sales that occurred from the beginning of the offering to and including June 28, 2020 and $ 24.50 per share thereafter.

The selling price of the Series D Preferred Stock was $ 25.00 per share for all sales that occurred from the beginning of the offering to and

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

including June 28, 2020 and $ 24.50 per share thereafter.

Shares of Series D Preferred Stock were recorded in permanent equity at the time of their issuance.

5 unchanged sentences

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 December 31, 2024, 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).

Series L Preferred Stock —On November 21, 2017, the Company issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $ 28.37 per share (“Series L Preferred Stock Stated Value”), subject to adjustment.

The Company received gross proceeds of $ 229.3 million from the sale of the Series L Preferred Stock, which was reduced by issuance-specific offering costs.

On September 15, 2022, the Company repurchased 2,435,284 shares of its Series L Preferred Stock in a privately negotiated transaction (the “Series L Repurchase”).

The shares were repurchased at a purchase price of $ 27.40 per share (a 3.4 % discount to the stated value of $ 28.37 per share) plus $ 1.12 per share of accrued and unpaid dividends (or $ 2.7 million accrued and unpaid dividends in the aggregate).

The total cost to complete the Series L Repurchase, including transactions costs of $ 700,000 (or $ 0.29 per share), was $ 70.1 million.

In December 2022, the Company announced the redemption of all outstanding shares of its Series L Preferred Stock.

In January 2023, the Company completed such previously-announced redemption of all outstanding shares of its Series L Preferred Stock in cash at its stated value of $ 28.37 per share (plus accrued and unpaid dividend of $ 1.56 per share, or $ 4.6 million in the aggregate).

The total cost to complete the Series L Redemption, including transaction costs of $ 93,000 (or $ 0.03 per share), was $ 83.8 million.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

As of December 31, 2025, there were 44,325 shares of Series D Preferred Stock outstanding and 12,532 shares of Series D Preferred Stock had been redeemed.

Of the 12,532 shares of Series D Preferred Stock that have been redeemed, the redemption of 8,410 shares of Series D Preferred Stock were paid in cash and 4,122 shares of Series D Preferred Stock were paid in shares of Common Stock, including all accrued and unpaid dividends as of the redemption date (collectively, the “Series D In-Kind Redemptions”).

All such redemptions were redeemed at the option of the holders.

The Series D In-Kind Redemptions resulted in the aggregate issuance of 11,556 shares of Common Stock.

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

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Additionally, during the year ended December 31, 2025, the Company paid dividends of $ 126,000 and $ 85,000 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 year ended December 31, 2023, the Company paid $ 13.9 million, $ 10.9 million, $ 69,000 and $ 4.6 million of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, respectively.

During the year ended December 31, 2024, the Company paid $ 17.8 million, $ 7.8 million and $ 57,000 of cash dividends on the Series A1 Preferred Stock, Series A Preferred Stock and Series D Preferred Stock, respectively.

Additionally, during the year ended December 31, 2024, the Company paid dividends of $ 389,000 and $ 258,000 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.

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 as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (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.

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

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

On or about March 16, 2026, the Company expects to redeem approximately 1,957,023 shares of Series A Preferred Stock, approximately 7,767,609 shares of Series A1 Preferred Stock and approximately 21,760 shares of Series D Preferred Stock (collectively “Preferred Stock”) in shares of Common Stock (the “March 2026 Redemption”).

Other than the March 2026 Redemption, the company does not currently intend to redeem, at the Company’s election, additional Preferred Stock in shares of Common Stock.

However, the Company will evaluate redemption requests submitted by holders of its shares of Preferred Stock at the time it receives them and may elect to redeem those Preferred Shares in Common Stock or cash, at the Company’s discretion.

STOCKHOLDERS’ EQUITY

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

Consequently, the dividend rate on a quarterly basis

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

does not necessarily correlate directly to any individual factor.

Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2024 and 2023 consist of the following:

Declaration Date Payment Date Type Cash Dividend Per

Share of Common Stock

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 year ended December 31, 2024 consisted of the following ( no cash dividends were declared for the year ended December 31, 2025):

Declaration Date Payment Date Type Dividend Per Common Share

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

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March 27, 2024 April 22, 2024 Regular Quarterly $ 21.250

December 20, 2023 January 16, 2024 Regular Quarterly $ 0.850

September 27, 2023 October 23, 2023 Regular Quarterly $ 0.850

June 27, 2023 July 24, 2023 Regular Quarterly $ 0.850

March 20, 2023 April 11, 2023 Regular Quarterly $ 0.850

_____________________

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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.

At the time of issuance, the exercise price of each Series A Preferred Warrant was at a 15.0 % premium to the per share estimated NAV of the Company’s Common Stock then most recently published and designated as the applicable NAV.

However, in accordance with the terms of the Series A Preferred Warrants, the exercise price of each Series A Preferred Warrant issued prior to the Reverse Stock Split was automatically adjusted to reflect the effect of the Reverse Stock Split and, in the discretion of the Company’s Board of Directors, the exercise price and the number of shares issuable upon exercise of each Series A Preferred Warrant issued prior to the Special Dividend was adjusted to reflect the effect of the Special Dividend.

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 December 31, 2024, the Company had 118,911 Series A Preferred Warrants outstanding to purchase 29,728 shares of Common Stock in connection with the Company’s offering of Series A Preferred Units and allocated net proceeds of $ 28,000 after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity.

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

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

Share Repurchase Program

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

There were no repurchases during the year ended December 31, 2024.

As of December 31, 2024, the Company had repurchased 66,246 shares of Common Stock for $ 4.7 million.

FAIR VALUE OF FINANCIAL INSTRUMENTS

There were no repurchases during the years ended December 31, 2025 or 2024.

As of December 31, 2025, the Company had repurchased 2,650 shares of Common Stock (adjusted for the Reverse Stock Splits) for $ 4.7 million.

FAIR VALUE MEASUREMENTS

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

The hierarchy for inputs used in measuring fair value is as follows:

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

Level 1 Inputs —Quoted prices in active markets for identical assets or liabilities

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

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

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

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

Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs.

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

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

Loans Receivable —The Company determined 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 was based

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

primarily on the anticipated proceeds to be received upon sale.

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

Year Ended December 31,

Discount Rate Prepayment Rate Discount Rate Prepayment Rate

December 31, 2024

Discount Rate Prepayment Rate

SBA 7(a) loans receivable, subject to credit risk 7.30 % - 10.75 %

4.07 % - 17.50 %

7.83 % - 11.00 %

4.88 % - 17.50 %

SBA 7(a) loans receivable, subject to loan-backed notes 9.00 % - 10.75 %

4.81 % - 17.50 %

10.00 % - 11.00 %

4.88 % - 17.50 %

SBA 7(a) loans receivable, subject to secured borrowings 10.25 % - 10.25 %

5.00 % - 17.50 %

10.00 % - 10.50 %

5.00 % - 17.50 %

As of December 31, 2025, the Company reclassified the assets and liabilities of First Western as held for sale, including the Company’s portfolio of loans receivable.

See Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) later in this footnote for further discussion of the fair value measurement of the assets held for sale.

Derivative Instruments — The Company’s derivative instruments are comprised of two interest rate caps.

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 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.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

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 December 31, 2025 and 2024.

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(in thousands)

SBA 7(a) loans receivable, subject to loan-backed notes $ 34,452 $ 37,657 $ 43,263 $ 46,701 3

SBA 7(a) loans receivable, subject to credit risk (1)

$ — $ — $ 18,850 $ 18,994 3

SBA 7(a) loans receivable, subject to loan-backed notes (1)

$ — $ — $ 34,452 $ 37,657 3

SBA 7(a) loans receivable, subject to secured borrowings (1)

$ — $ — $ 1,383 $ 1,383 3

SBA 7(a) loans receivable, held for sale (1)

Fixed rate mortgages payable (1)

$ — $ — $ 1,525 $ 1,600 3

Mortgages payable (2)

$ 268,403 $ 251,632 $ 269,100 $ 233,364 3

Junior subordinated notes (2)

$ 27,070 $ 26,176 $ 27,070 $ 25,415 3

(1) Reclassed to held for sale as of December 31, 2025.

See Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) for more detail.

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

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

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

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

As discussed in Note 3, during the year ended December 31, 2025, one office property was deemed to be impaired due to the Company’s undiscounted future cash flow estimate for the property being less than its carrying value as result of a decline in performance.

Such impairment resulted in the carrying value being reduced to an estimated fair value of $ 1.9 million,

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

resulting in an impairment charge of $ 221,000 .

In addition, one multifamily development site, currently being operated as a parking lot, was deemed to be impaired due to the Company’s undiscounted future cashflow estimate being less than its carrying value as a result of a decline in market conditions and a lack of immediate plans to develop the property.

Such impairment resulted in the carrying value being reduced to an estimated fair value $ 11.2 million, resulting in an impairment charge of $ 3.5 million.

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

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

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

No impairment charges were incurred during the year ended December 31, 2024.

As of December 31, 2025, the Company reclassified the assets and liabilities of First Western as held for sale, including the Company’s portfolio of loans receivable.

Upon the reclassification of First Western to held for sale, the CECL balance related to the loans receivable was reversed.

Following the loss on assets held for sale, as of December 31, 2025, the aggregate net assets and liabilities of First Western were recorded at fair value, less costs to sell.

See note 5 for more detail on the assets and liabilities held for sale.

The following table presents the impairment charges by asset class recorded during the year ended December 31, 2025 (in thousands):

Year Ended December 31, 2025

Asset class impaired:

Land $ ( 2,586 )

Land improvements ( 870 )

Work in progress ( 236 )

Total impairment loss $ ( 3,692 )

RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS

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Following the end of each quarter, the Administrator will deliver to the Company (i) a calculation of the cumulative fees earned by the Operator and the Administrator under the methodology prescribed by the Fee Waiver from the Effective Date through the end of such quarter and (ii) a calculation of the cumulative fees that would have been earned by the Operator and the Administrator during such period under the Master Services Agreement and the Investment Management Agreement without giving effect to the Fee Waiver.

If, in respect of any quarter, the aggregate fees that are payable under the methodology prescribed by the Fee Waiver exceed the aggregate fees that would have been payable under the Master Services Agreement and the Investment Management Agreement, without giving effect to the Fee Waiver, such quarter will be deemed

If, in respect of any quarter, the aggregate fees that are payable under the

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

an “Excess Quarter”.

methodology prescribed by the Fee Waiver exceed the aggregate fees that would have been payable under the Master Services Agreement and the Investment Management Agreement, without giving effect to the Fee Waiver, such quarter will be deemed an “Excess Quarter”.

For any quarter following an Excess Quarter, the Company (upon the direction of the independent members of the Board) may, at its option and upon written notice to Administrator, elect to calculate all fees due to the Administrator and the Operator in accordance with the Master Services Agreement and the Investment Management Agreement, without giving effect to the Fee Waiver, from and after such Excess Quarter.

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

During the years ended December 31, 2024 and 2023, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, operational and ongoing support in connection with the Company’s offering of Preferred Stock.

During the years ended December 31, 2025 and 2024, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, operational and ongoing support in connection with the Company’s Preferred Stock.

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

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Construction management fees and development management reimbursements are capitalized to investments in real estate on the accompanying consolidated balance sheets.

Lending Segment Expenses — The Company has a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC (“CIM SBA”), an affiliate of CIM Group, and the Company’s subsidiary, PMC Commercial Lending, LLC.

The agreement provides that CIM SBA will provide personnel and resources to the Company and that the Company will reimburse CIM SBA for the costs and expenses of providing such personnel and resources.

Lending Segment Expenses — As of December 31, 2025, the Company had a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC (“CIM SBA”), an affiliate of CIM Group, and the Company’s subsidiary, PMC Commercial Lending, LLC.

The agreement provided that CIM SBA would provide personnel and resources to the Company and that the Company would reimburse CIM SBA for the costs and expenses of providing such personnel and resources.

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

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and for the Years Ended December 31, 2025 and 2024 (Continued)

Offering-Related Fees — CCO Capital, LLC (“CCO Capital”) became the exclusive dealer manager for the Company’s public offering of the Series A Preferred Stock and Series A Preferred Warrants effective as of May 31, 2019.

Offering-Related Fees — CCO Capital, LLC (“CCO Capital”) became the exclusive dealer manager for the Company’s prior public offering of the Series A Preferred Stock and Series A Preferred Warrants effective as of May 31, 2019.

CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator.

The Company’s offering of the Series A Preferred Warrants ended at the end of January 2020.

On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acted as the exclusive dealer manager for the Company’s public offering of its Series A Preferred Stock and Series D Preferred Stock.

On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acted as the exclusive dealer manager for the Company’s prior public offering of its Series A Preferred Stock and Series D Preferred Stock.

The Second Amended and Restated Dealer Manager Agreement was subsequently amended by the Company and CCO Capital to address changes to, among other things, selling commissions and dealer manager fees.

On November 22, 2022, the Company entered into the Fourth Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital has been acting as the exclusive dealer manager for the Company’s public offering of its Series A1 Preferred Stock.

Thereunder, the Company agreed to compensate CCO Capital, as the dealer manager for the offering, as follows:

(1) a dealer manager fee of up to 3.00 % of the selling price of each share of Series A1 Preferred Stock sold and (2) selling commissions of up to 7.00 % of the selling price of each share of Series A1 Preferred Stock sold.

The Company has been informed that CCO Capital generally reallows 100 % of the selling commissions on sales of Series A1 Preferred Stock and generally reallows substantially all of the dealer manager fee on sales of Series A1 Preferred Stock to participating broker-dealers.

In addition, pursuant to the Third Amended and Restated Dealer Manager Agreement, CCO Capital will no longer solicit or make any offers for the sale of shares of Series A Preferred Stock or Series D Preferred Stock.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated:

On November 22, 2022, the Company entered into the Fourth Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acted as the exclusive dealer manager for the Company’s prior public offering of its Series A1 Preferred Stock.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated (in thousands):

Year Ended December 31,

(in thousands)

Asset Management Fees:

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Upfront dealer manager and trailing dealer manager fees (7)

$ 546 $ 1,391

Non-issuance specific offering costs

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(2) Does not include the Company’s share of the onsite management and other cost reimbursements from the Unconsolidated Joint Ventures of $ 450,000 and $ 511,000 for the years ended December 31, 2025 and 2024, respectively.

(3) Does not include the Company’s share of the leasing commissions from the Unconsolidated Joint Ventures of $ 48,000 and $ 32,000 for the year ended December 31, 2024 and 2023, respectively.

(3) Does not include the Company’s share of the leasing commissions from the Unconsolidated Joint Ventures of $ 69,000 and $ 48,000 for the years ended December 31, 2025 and 2024, respectively.

(4) Does not include the Company’s share of the construction management fees from the Unconsolidated Joint Ventures of $ 147,000 and $ 172,000 for the years ended December 31, 2025 and 2024, respectively.

(5) Does not include the Company’s share of the development management reimbursements from the Unconsolidated Joint Ventures of $ 382,000 and $ 756,000 for the year ended December 31, 2025 and 2024, respectively.

(6) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $ 72,000 and $ 132,000 for the years ended December 31, 2025 and 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.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

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and for the Years Ended December 31, 2025 and 2024 (Continued)

(6) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $ 132,000 and $ 121,000 for the years ended December 31, 2024 and 2023, 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 December 31, 2024 and 2023, $ 0.0 million and $ 2.5 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.

As of December 31, 2024 and 2023, due to related parties consisted of the following:

As of December 31, 2025 and December 31, 2024, due to related parties consisted of the following:

December 31, 2025 December 31, 2024

(in thousands)

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

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

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

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

During the year ended December 31, 2023 , the Company acquired an interest in four assets from entities indirectly wholly owned by a fund that is managed by affiliates of CIM Group for $ 282.9 million (exclusive of transactions costs) .

See Note 3 and Note 7 for more information.

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.

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 year ended December 31, 2025, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 335,000 .

For the year ended December 31, 2024, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 342,000 .

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

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and for the Years Ended December 31, 2025 and 2024 (Continued)

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 year ended December 31, 2023, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 170,000 .

For the year ended December 31, 2024, the Company’s share of the income from the tenant earned by the 4750 Wilshire JV was $ 342,000 .

On December 29, 2025, an affiliate of CIM Group extended an unsecured term loan facility to the Company with total available principal of $ 4.0 million and with an applicable interest rate of 7.5 %.

The unsecured term loan facility expired concurrent with the closing of the sale of First Western on January 21, 2026, and the Company did not borrow any amounts under the facility prior to its maturity.

COMMITMENTS AND CONTINGENCIES

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Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements.

The Company’s lending business was sold in January 2026.

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 $ 11.3 million in future obligations under leases to fund tenant improvements and other future construction obligations as of December 31, 2024.

As of December 31, 2024, $ 19.9 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 mortg age loan agreement entered into in June 2016.

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

Under certain circumstances, this employment agreement provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officer.

The Company had a total of $ 5.2 million in future obligations under leases to fund tenant improvement as of December 31, 2025.

As of December 31, 2025, $ 13.4 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 December 31, 2025, the expected costs to complete the Sheraton Renovations was $ 4.1 million.

As of December 31, 2025, the Company was entitled to receive an additional $ 3.3 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 $ 1.2 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 had an employment agreement with one of its officers.

Under certain circumstances, this employment agreement provided for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officer.

Litigation —The Company is not currently involved in any material pending or threatened legal proceedings nor, to the Company’s knowledge, are any material legal proceedings currently threatened against the Company, other than routine litigation arising in the ordinary course of business.

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

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

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

1 unchanged sentence

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

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

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

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

2 unchanged sentences

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

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

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

However, if asserted, it could have a material adverse

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

1 unchanged sentence

and for the Years Ended December 31, 2025 and 2024 (Continued)

properties that management believes will have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock.

effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on our Preferred Stock or any renewed dividends on our Common Stock.

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

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

Years Ending December 31, Total

Years Ended December 31, Total

2026 $ 50,194

12 unchanged sentences

State income taxes (1)

Investment Tax Credits

Change in valuation allowance 425 151

4 unchanged sentences

and for the Years Ended December 31, 2025 and 2024 (Continued)

(1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category.

The components of the Company’s net deferred tax asset, which are included in other assets, are as follows:

Year Ended December 31,

(in thousands)

10 unchanged sentences

The increase in the valuation allowance recorded in 2025 was $ 425,000 .

Income taxes paid (net of refunds) for the years ended December 31, 2025 and 2024 are as follows:

Year Ended December 31,

(in thousands)

Federal $ 66 $ 845

State and Local 2 2

Income tax provision $ 68 $ 847

The periods subject to examination for the Company’s federal and state income tax returns are 2022 through 2025.

1 unchanged sentence

The Tax Cuts and Jobs Act of 2017, signed into law in late December 2017, made sweeping changes to provisions of the Code applicable to businesses.

The CARES Act, signed into law in March 2020, made additional changes to provisions on the Code applicable to the businesses.

The CARES Act, signed into law in March 2020, made additional changes to provisions on the Code applicable to businesses.

The Inflation Reduction Act, signed into law in August 2022 also made changes to the Code applicable to businesses.

The One Big Beautiful Bill, signed into law in July 2025 also made changes to the Code applicable to businesses.

Management has reviewed these statutory changes and determined that the impact to the Company’s consolidated financial statements is not material.

1 unchanged sentence

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

As previously disclosed, we completed the sale of our lending business on January 21, 2026, and, as a result, our lending business will cease to be one of our reportable segments in future periods.

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

The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments.

The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

not considered separate operating segments.

The reportable segments are accounted for on the same basis of accounting as described in Note 2.

3 unchanged sentences

The CODM evaluates performance and allocates resources based on segment net operating income (loss).

All expense categories on the statement of operations are significant and there are no other significant segment expenses that would require

All expense categories on the statement of operations are significant and there are no other significant segment expenses that would require disclosure.

The CODM uses net operating income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating underwriting standards, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

1 unchanged sentence

and for the Years Ended December 31, 2025 and 2024 (Continued)

The net operating income (loss) of the Company’s segments for the years ended December 31, 2025 and 2024 is as follows:

1 unchanged sentence

(in thousands)

Office (1), (2):

Revenues $ 50,140 $ 54,283

30 unchanged sentences

This change corresponded with the 4750 Wilshire JV’s substantial completion of the 4750 Wilshire Project.

In the above table, the Company’s income earned from its investment in the 4750 Wilshire JV prior to October 1, 2024 is included within the

In the above table, the Company’s income earned from its investment in the 4750 Wilshire JV prior to October 1, 2024 is included within the office segment and its income earned from its investment in the 4750 Wilshire JV subsequent to October 1, 2024 is included within the multifamily segment.

In addition, 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, activity

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

1 unchanged sentence

and for the Years Ended December 31, 2025 and 2024 (Continued)

office segment and its income earned from its investment in the 4750 Wilshire JV subsequent to October 1, 2024 is included within the multifamily segment.

In addition, 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 it in the multifamily segment, from its previous classification in the office segment.

In the above table, activity related to 4750 Wilshire Boulevard (Backlot) occurring prior to October 1, 2024 is included within the office segment and such activity subsequent to October 1, 2024 is included within the multifamily segment.

related to 4750 Wilshire Boulevard (Backlot) occurring prior to October 1, 2024 is included within the office segment and such activity subsequent to October 1, 2024 is included within the multifamily segment.

In the above table, activity related to both the 1910 Sunset JV and 1015 N Mansfield JV are included within the office segment, while activity related to the 1902 Park JV is included in the multifamily segment.

(2) Beginning on October 1, 2025, in connection with the 1910 Sunset JV’s commencement of leasing at the 1915 Park Project, the Company began reporting its share of the income from the operations of the 1915 Park Project in its multifamily segment, while income from the operations of the 1910 Sunset Office Building continue to be reported in its office segment.

(3) Lending segment general and administrative expenses for the year ended December 31, 2025 included the reversal of the CECL balance of $ 2.6 million in connection with the reclassification of the loans receivable as held-for-sale as of December 31, 2025, in connection with the sale of First Western.

A reconciliation of the Company’s segment net operating income to net income attributable to the Company for the years ended December 31, 2025 and 2024 is as follows:

7 unchanged sentences

General and administrative ( 4,434 ) ( 4,267 )

Transaction costs ( 1,382 ) ( 4,421 )

Transaction-related costs ( 1,475 ) ( 1,382 )

Depreciation and amortization ( 27,081 ) ( 27,373 )

Loss on early extinguishment of debt ( 88 ) ( 1,416 )

Impairment of real estate ( 3,692 ) —

Loss on assets held for sale

Gain on sale of real estate 679 —

(Loss) income before provision for income taxes ( 24,952 ) ( 50,228 )

Loss before provision for income taxes

( 39,078 ) ( 24,952 )

Provision for income taxes ( 497 ) ( 798 )

Net (loss) income ( 25,750 ) ( 51,456 )

Net loss (income) attributable to noncontrolling interests 575 2,971

Net (loss) income attributable to the Company $ ( 25,175 ) $ ( 48,485 )

( 39,575 ) ( 25,750 )

Net loss attributable to noncontrolling interests

Net loss attributable to the Company

$ ( 39,002 ) $ ( 25,175 )

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2025 and 2024

and for the Years Ended December 31, 2025 and 2024 (Continued)

The condensed assets for each of the segments as of December 31, 2025 and 2024 are as follows:

December 31, 2025 December 31, 2024

(in thousands)

6 unchanged sentences

Total assets $ 859,187 $ 889,555

(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 it 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 December 31, 2024 and 2023 are included in with Multifamily and Office, respectively.

CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements as of December 31, 2024 and 2023

and for the Years Ended December 31, 2024 and 2023 (Continued)

(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 December 31, 2025 and 2024 are included in with Multifamily.

(2) As of December 31, 2025, the Company had reclassified $ 65.9 million of lending segment assets as held-for-sale, in connection with the sale of First Western.

SUBSEQUENT EVENTS

On January 31, 2025, the Company entered into a modification agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender (the “Fifth Modification Agreement”) pursuant to which the credit facility’s maturity date was extended from January 31, 2025 to March 31, 2025.

As of the date of the Fifth Modification Agreement, the remaining aggregate principal balance outstanding under the 2022 Credit Facility was $ 15.0 million.

On February 14, 2025, the Company and a lender entered into a $ 5.0 million first lien mortgage loan agreement secured by the Company’s property at 8944 Lindblade Street in Los Angeles, California.

As previously announced on November 12, 2025, the Company and First Western entered into the Membership Interest Purchase Agreement with the Buyer.

The Closing occurred on January 21, 2026.

At the Closing, pursuant to the Membership Interest Purchase Agreement, and upon the terms and subject to the conditions therein, Buyer purchased from the Company all of the issued and outstanding equity interests of First Western SBLC, LLC for a purchase price of approximately $ 44.9 million (which is net of the outstanding balance of debt related to the 2023 securitization of certain loan receivables), subject to adjustment.

At the Closing and upon giving effect to the payment of other debt, transaction expenses and other matters, the Transactions yielded net cash proceeds to the Company of approximately $ 31.2 million, after giving effect to transaction costs and the repayment of the $10.4 million balance on the Lending Division Revolving Credit Facility.

On February 13, 2026, the Company and the lender under the variable rate mortgage loan secured by our office property at 3601 S Congress, Avenue in Austin, Texas (the “Penn Field Mortgage”) executed an amendment to the Penn Field Mortgage to provide additional borrowing advances in the amount of $ 2.5 million under the Penn Field Mortgage.

Schedule III—Real Estate and Accumulated Depreciation

30 unchanged sentences

Austin, TX — 4,979 733 ( 119 ) 4,979 614 5,593 194 1972 / 2001 2020

1007 E 7th Street (5)

Austin, TX — 1,866 6 38 1,866 44 1,910 1 1920 2022

3101 S Western Avenue

2 unchanged sentences

Los Angeles, CA — 5,638 156 1,957 5,638 2,113 7,751 27 N/A 2022

1007 E 7th Street

Austin, TX — 1,866 6 249 1,866 255 2,121 1 1920 2022

3109 S Western Avenue

2 unchanged sentences

Oakland, CA 81,000 17,214 103,553 366 17,208 103,925 121,133 9,350 2021 2023

1150 Clay (6)

Oakland, CA 66,304 16,643 115,828 256 16,141 116,586 132,727 10,780 2021 2023

7 unchanged sentences

$ 371,959 $ 175,715 $ 641,436 $ 76,325 $ 172,614 $ 720,862 $ 893,476 $ 195,389

(1) These properties collateralize the revolving credit facility, which had a $ 15.0 million outstanding balance as of December 31, 2024.

(1) The aggregate gross cost of property included above for federal income tax purposes approximates $ 1.1 billion (unaudited) as of December 31, 2025.

(2) Net improvements (write-offs) since acquisition includes impairments of $ 3.5 million.

(3) Collectively, these properties collateralize a secured fixed rate mortgage, which had a $ 105.0 million outstanding balance as of December 31, 2025.

(4) Includes 8944 Lindblade Street and 8960 & 8966 Washington Boulevard.

(5) Net improvements (write-offs) since acquisition includes impairments of $ 221,000 .

(6) During the year ended December 31, 2025, there was a partial land sale related to this property thus reducing its land cost basis by $ 486,000 .

(7) This property also collateralizes the Sheraton Grand Hotel’s variable rate mortgage, which has a $ 91.0 million outstanding balance as of December 31, 2025.

10 unchanged sentences

Asset sales ( 486 ) —

Impairment ( 3,692 ) —

Retirements ( 15,099 ) ( 3,422 )

20 unchanged sentences

Texas 18 $ 18 $ 821 8.25 % to 10.00 % 07/13/34 — 03/29/49 5,737 —

West Virginia 8 $ 50 $ 960 9.00 % to 10.75 % 05/07/46 — 11/06/49 3,491 —

Michigan (3) 10 $ 22 $ 916 8.25 % to 9.50 % 03/27/38 — 12/18/48 3,299 —

Florida 10 $ 90 $ 740 9.25 % to 10.75 % 06/29/32 — 06/27/49 3,010 —

Pennsylvania 6 $ 287 $ 646 8.25 % to 10.00 % 03/05/40 — 10/26/49 2,850 —

West Virginia 5 $ 199 $ 944 8.25 % to 10.00 % 05/07/46 — 11/06/49 2,530 —

Florida 8 $ 95 $ 735 8.50 % to 10.00 % 06/29/32 — 06/27/49 2,291 —

Indiana 5 $ 111 $ 904 8.75 % to 9.75 % 05/17/41 — 08/26/46 2,014 —

Louisiana (4) 4 $ 114 $ 698 8.25 % to 9.50 % 01/30/48 — 03/12/50 1,653 964

Kentucky 6 $ 60 $ 430 9.75 % to 10.75 % 03/11/33 — 05/08/48 1,600 —

New York 5 $ 55 $ 704 9.25 % to 10.00 % 11/22/31 — 12/07/48 1,653 —

New Mexico 4 $ 80 $ 750 9.00 % to 10.75 % 11/17/34 — 04/19/48 1,315 —

Kentucky 6 $ 46 $ 421 9.00 % to 10.00 % 03/11/33 — 05/08/48 1,462 415

Oklahoma 6 $ 8 $ 502 8.25 % to 10.00 % 07/26/26 — 12/03/50 1,452 —

California 2 $ 453 $ 833 8.25 % to 8.50 % 09/27/48 — 11/22/49 1,286 —

4 unchanged sentences

Washington 1 $ 1,115 $ 1,115 8.75 % to 8.75 % 10/12/48 — 10/12/48 1,114 —

Montana 3 $ 208 $ 482 8.25 % to 8.25 % 10/10/48 — 07/03/50 1,031 —

North Dakota 4 $ 121 $ 411 8.25 % to 9.25 % 02/26/48 — 12/26/49 966 —

Tennessee 3 $ 141 $ 541 8.50 % to 9.50 % 06/07/46 — 10/02/49 905 —

Alabama (6) 3 $ 192 $ 344 9.50 % to 9.75 % 12/28/42 — 03/16/46 815 509

Kansas 3 $ 121 $ 345 8.50 % to 10.00 % 03/03/35 — 11/12/49 782 —

Wisconsin 2 $ 148 $ 471 9.00 % to 9.50 % 02/27/43 — 06/09/46 619 —

Nevada 2 $ 237 $ 372 8.25 % to 8.25 % 09/25/50 — 12/29/50 608 —

South Carolina 2 $ 259 $ 341 9.00 % to 10.00 % 11/06/40 — 11/30/43 586 —

Missouri 2 $ 79 $ 334 8.75 % to 9.25 % 12/14/29 — 03/17/50 414 —

New Mexico 1 $ 332 $ 332 8.25 % to 8.25 % 04/19/48 — 04/19/48 333 —

Georgia 1 $ 305 $ 305 9.25 % to 9.25 % 08/11/47 — 08/11/47 305 —

Virginia 2 $ 108 $ 159 8.75 % to 9.25 % 06/29/46 — 12/15/47 268 —

Arkansas 1 $ 244 $ 244 9.25 % to 9.25 % 09/06/43 — 09/06/43 244 —

5 $ 149 $ 226 8.25 % to 8.25 % 12/26/49 — 12/26/49 941 —

Government guaranteed portions (7) 1,013 —

SBA 7(a) loans, subject to secured borrowings (5) 1,361 —

Subject to secured borrowings (8) 1,309 —

Current expected credit losses ( 2,196 ) —

147 $ 51,955 (9)

(1) Includes $ 1,369,000 of loans with subordinate lien positions.

(1) All first lien position except $ 1,050,000 of loans with subordinate lien positions.

(2) Interest rates are variable at spreads over the prime rate unless otherwise noted.

(3) Includes a loan with a retained face value of $ 134,000 and a fixed interest rate of 9.00 %.

(4) Includes a loan with a retained face value of $ 964,000 , a valuation reserve of $ 152,000 and a fixed interest rate of 9.50 %.

(5) Includes a loan with a retained face value of $ 382,000 and a fixed interest rate of 9.75 %.

(6) Includes a loan with a retained face value of $ 509,000 , a valuation reserve of $ 103,000 and a fixed interest rate of 9.50 %.

(7) Represents the government guaranteed portions of the Company’s SBA 7(a) loans detailed above retained by us.

3 unchanged sentences

(9) For Federal income tax purposes, the aggregate cost basis of the Company’s loans was approximately $ 52.2 million (unaudited).

All of the Company’s mortgage loans on real estate were sold in January 2026.

Schedule IV—Mortgage Loans on Real Estate (Continued)

7 unchanged sentences

Other - bad debt recovery ( 524 ) ( 352 )

Reversal of CECL (1)

Other - accretion of loan discounts, net of amortization of deferred origination costs 1,471 1,397

2 unchanged sentences

Cost of mortgages sold, net ( 20,117 ) ( 30,417 )

Other - adoption of ASU 2016-13 (1)

Other - bad debt expense — —

Balance, end of period $ 54,513 $ 56,210

(1) Effective January 1, 2023, the Company adopted ASU 2016-13 and recorded a cumulative adjustment of $ 783,000 representing a non cash transaction.

(1) The Company’s CECL balance of $ 2.6 million was reversed as a result of the Company’s loans receivable being reclassified as held for sale at December 31, 2025.

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-K

Item 9A. Controls and Procedures