Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One): For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13610 CREATIVE MEDIA & COMMUNITY TRUST CORPORATION (Exact name of registrant as specified in its charter) Maryland 75-6446078 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EX ...

Group 1 - The earnings conference call for Creative Media and Community Trust (CMCT) for the third quarter of 2025 is being conducted, with key executives present [1][2]. - The call is being recorded and will be available for later access on the company's Investor Relations website, along with the earnings release [3]. - The earnings release includes a reconciliation of non-GAAP financial measures that will be discussed during the call [3]. Group 2 - Forward-looking statements will be made during the call, based on the company's beliefs and current information, but actual results may differ due to various risks and uncertainties [4][5]. - The company acknowledges that while assumptions made are considered reasonable, they are not guarantees of future performance, and actual results may vary significantly [5].

Financial Data and Key Metrics Changes - The company's core FFO was negative $10.5 million for Q3 2025, compared to negative $11.5 million in the prior year, indicating a slight improvement [17] - Overall net operating income (NOI) was $7 million, down from $9.8 million in the previous quarter [6][7] - The company reported a negative FFO of $11.1 million, or negative $14.75 per diluted share, compared to negative $28.4 million in the prior year [17] Business Line Data and Key Metrics Changes - Office segment NOI decreased to $5 million in Q3 2025 from $5.4 million in Q3 2024, primarily due to lower rental revenues and occupancy declines [14][15] - Hotel NOI was $850,000 in Q3 2025, down from $1 million in the prior year, impacted by renovation disruptions [16] - Multifamily segment NOI increased to $792,000 in Q3 2025 from $508,000 in the prior year, driven by lower real estate taxes [16] Market Data and Key Metrics Changes - Multifamily occupancy at 701 South Hudson improved to approximately 81% from 68% at the end of the second quarter [9] - San Francisco experienced a third-quarter rent growth of 5.2%, the strongest year-over-year growth rate since 2015 [11] - The office portfolio was 73.6% leased at the end of Q3 2025, with a notable increase to 86.6% when excluding one Oakland property [12] Company Strategy and Development Direction - The company is focused on strengthening liquidity and balance sheet while growing its multifamily business [4] - A definitive agreement was made to sell the lending business for approximately $44 million, considered a non-core asset [5] - The company aims to benefit from a recovering commercial real estate market, supported by lower interest rates and increased office leasing activity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving cash flow in 2026, driven by office leasing activity, hotel renovations, and multifamily performance [8] - The company believes headwinds from COVID are largely behind, with return-to-office trends creating positive momentum [12] - Management anticipates meaningful opportunities for multifamily NOI growth through rising rents and improved occupancy [11] Other Important Information - Barry Berlin, the CFO, will step down following the sale of the lending division, with Brandon Hill set to assume the role [8] - The company is nearing completion of an $11 million renovation at the Sheraton Grand Sacramento, funded through various sources [12] Q&A Session Summary - There were no questions during the Q&A session, leading to the conclusion of the conference [21]

Nov 14, 2025 8:00 AM Eastern Standard Time Creative Media & Community Trust Corporation Reports 2025 Third Quarter Results Share DALLAS--(BUSINESS WIRE)--Creative Media & Community Trust Corporation (NASDAQ and TASE: CMCT) ("we†, "our†, "CMCT†, or the "Company†) today reported operating results for the three months ended September 30, 2025. Third Quarter 2025 Highlights Real Estate Portfolio Financial Results Asset Sales On November 6, 2025, we entered into an agreement with a third-party buyer to s ...

Group 1: Leap Therapeutics, Inc. (LPTX) - Leap Therapeutics, Inc. experienced a significant stock price surge of approximately 441.49%, closing at $2.36 [1][2] - The company traded an unusually high volume of 610,713,569 shares, indicating strong news flow or shifting expectations around its pipelines and partnerships [2] - The rise in stock price is often associated with developments such as trial readouts, regulatory milestones, or strategic collaborations that can reshape investor outlook [2] Group 2: Quhuo Limited (QH) - Quhuo Limited's stock price increased by 68.01% to $1.39, with a trading volume of 31,416,317 shares [1][3] - The rally may reflect renewed confidence in the company's growth prospects, particularly following a collaboration with the "Better Life No.1 Collective Fund Trust Plan" [3] - The company's wide 52-week price range, from $0.735 to $169.11, highlights the potential for price volatility driven by sentiment shifts in smaller-cap stocks [3] Group 3: Creative Media & Community Trust Corporation (CMCT) - Creative Media & Community Trust Corporation's stock climbed 61.48% to $8.09, with 46,202,384 shares traded [1][4] - Investor enthusiasm is attributed to the company's definitive agreement to sell its lending division, indicating a focus on core real estate operations and potential balance-sheet flexibility [4] Group 4: Spruce Power Holding Corporation (SPRU) - Spruce Power Holding Corporation's stock rose 45.98% to $4.45, supported by a trading volume of 6,006,670 shares [1][5] - The company reported third-quarter 2025 revenue of $30.7 million, a 44% year-over-year increase, and a cash balance of $98.8 million, reflecting improving scale and liquidity [5] Group 5: Market Trends - The sharp advances across biotechnology, real estate, and clean energy sectors highlight the convergence of sector-specific catalysts, capital strategy decisions, and improving fundamentals [6] - Market participants are expected to monitor for follow-through events such as additional clinical data, deal closings, or sustained cash-flow trends to assess the durability of these gains [6]

Core Insights - Shares of Creative Media & Community Trust (NASDAQ: CMCT) nearly doubled following the announcement of the sale of its lending division to PG FR Holding [1] Company Summary - Creative Media & Community Trust is a real estate investment trust (REIT) that has made a strategic decision to divest its lending division [1] - The sale to PG FR Holding is expected to significantly impact the company's stock performance, as evidenced by the nearly doubling of its shares [1]

PART I. Financial Information This section provides comprehensive unaudited financial statements, management's discussion and analysis, and disclosures on market risk and internal controls [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Creative Media & Community Trust Corporation, including balance sheets, statements of operations, equity, and cash flows, along with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing its assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$885,024** | **$889,555** | | Investments in real estate, net | $704,775 | $709,194 | | Cash and cash equivalents | $27,769 | $20,262 | | **Total Liabilities** | **$584,250** | **$562,492** | | Debt, net | $535,605 | $505,732 | | **Total Equity** | **$288,270** | **$306,264** | - Total assets slightly decreased to **$885.0 million** as of June 30, 2025, from **$889.6 million** at the end of 2024, accompanied by an increase in total liabilities to **$584.3 million** and a decrease in total equity to **$288.3 million**[10](index=10&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's financial performance over specific periods, outlining revenues, expenses, and net loss Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$29,689** | **$34,439** | **$61,984** | **$68,437** | | **Total Expenses** | **$38,245** | **$36,126** | **$75,540** | **$73,433** | | **Net Loss** | **$(9,151)** | **$(852)** | **$(15,423)** | **$(4,757)** | | Net Loss Attributable to Common Stockholders | $(14,279) | $(9,667) | $(26,177) | $(21,962) | | Basic and Diluted EPS | $(18.94) | $(98.64) | $(39.36) | $(224.10) | - The company's net loss widened significantly in Q2 2025 to **$9.2 million** from **$0.9 million** in Q2 2024, and for the first six months, the net loss grew to **$15.4 million** in 2025 from **$4.8 million** in 2024, driven by lower revenues and higher expenses[11](index=11&type=chunk) [Consolidated Statements of Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Equity) This section presents the changes in the company's equity components, including net income, dividends, and stock transactions - Total equity decreased from **$306.3 million** at the end of 2024 to **$288.3 million** as of June 30, 2025, primarily driven by a net loss of **$9.15 million** and preferred stock dividends of **$5.3 million** in Q2 2025[12](index=12&type=chunk) - During the six months ended June 30, 2025, the company redeemed Series A1 and Series A Preferred Stock by issuing **96,283** and **192,144** shares of common stock, respectively[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,271) | $5,540 | | Net cash used in investing activities | $(10,226) | $(1,388) | | Net cash provided by financing activities | $16,487 | $2,460 | | **Net Increase in Cash** | **$4,990** | **$6,612** | - For the first six months of 2025, the company experienced a net cash outflow from operations of **$1.3 million**, a significant reversal from a **$5.5 million** inflow in the same period of 2024, primarily due to a higher net loss[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the figures presented in the consolidated financial statements - The company primarily acquires, develops, owns, and operates premier multifamily properties and Class A/creative office assets, also including a hotel and an SBA 7(a) loan origination platform[18](index=18&type=chunk) - The company effected two reverse stock splits in 2025: a **1-for-10** split in January and a **1-for-25** split in April, with all share and per-share amounts retroactively adjusted[20](index=20&type=chunk)[22](index=22&type=chunk) - During Q2 2025, the company recognized an impairment charge of **$0.221 million** on an office property in Austin, Texas, reducing its carrying value to an estimated fair value of **$1.9 million**[74](index=74&type=chunk) - As of June 30, 2025, the company had **$535.6 million** in net debt, an increase from **$505.7 million** at year-end 2024, and in April 2025, it repaid and terminated its 2022 Credit Facility, resulting in a loss on early extinguishment of debt of **$0.088 million**[100](index=100&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results, highlighting increased net losses due to lower revenues and higher expenses, alongside strategic shifts towards multifamily properties and liquidity management efforts [Executive Summary](index=43&type=section&id=Executive%20Summary) This section provides an overview of the company's strategic focus on multifamily properties and a snapshot of its current portfolio performance - The company's strategy is to increase its focus on acquiring, developing, and operating premier multifamily properties, while opportunistically disposing of assets that do not fit this strategy[215](index=215&type=chunk)[217](index=217&type=chunk) Portfolio Snapshot as of June 30, 2025 | Segment | Metric | Value | | :--- | :--- | :--- | | Office Properties | Occupancy | 68.1% | | Multifamily Properties | Occupancy | 83.4% | | Hotel | RevPAR (H1 2025) | $171.63 | - The decrease in office portfolio occupancy to **68.1%** from **82.5%** a year prior was primarily due to a tenant exercising a partial termination option at an office property in Oakland, California[223](index=223&type=chunk)[229](index=229&type=chunk) [2025 Results of Operations (Comparison of the Three Months Ended June 30, 2025 to 2024)](index=47&type=section&id=2025%20Results%20of%20Operations%20%28Q2%20Comparison%29) This section analyzes the company's financial performance for the second quarter of 2025 compared to the same period in 2024, highlighting key revenue and expense trends Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $29,689 | $34,439 | $(4,750) | (13.8)% | | Total Expenses | $38,245 | $36,126 | $2,119 | 5.9% | | **Net Loss** | **$(9,151)** | **$(852)** | **$(8,299)** | **NM** | - The increase in net loss for Q2 2025 was primarily due to a **$6.4 million** decrease in segment net operating income and a **$1.3 million** increase in interest expense[239](index=239&type=chunk) - FFO attributable to common stockholders decreased by **$4.6 million** to **$(7.9) million** in Q2 2025 from **$(3.3) million** in Q2 2024, mainly due to lower segment net operating income and higher interest expense[244](index=244&type=chunk) - Office revenue decreased by **15.8%** due to lower occupancy in an Oakland property, while multifamily revenue dropped **27.6%** due to lower occupancy and rents[249](index=249&type=chunk)[251](index=251&type=chunk) [2025 Results of Operations (Comparison of the Six Months Ended June 30, 2025 to 2024)](index=51&type=section&id=2025%20Results%20of%20Operations%20%28H1%20Comparison%29) This section analyzes the company's financial performance for the first half of 2025 compared to the same period in 2024, detailing revenue and expense trends H1 2025 vs H1 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $61,984 | $68,437 | $(6,453) | (9.4)% | | Total Expenses | $75,540 | $73,433 | $2,107 | 2.9% | | **Net Loss** | **$(15,423)** | **$(4,757)** | **$(10,666)** | **224.2%** | - The increased net loss for the first half of 2025 was primarily driven by an **$8.3 million** decrease in segment net operating income and a **$2.4 million** increase in interest expense[268](index=268&type=chunk) - FFO attributable to common stockholders for H1 2025 was **$(13.3) million**, a decrease of **$4.1 million** from **$(9.2) million** in H1 2024, driven by lower segment operating income and higher interest expense, partially offset by lower preferred stock dividends and redemptions[272](index=272&type=chunk) [Cash Flow Analysis](index=55&type=section&id=Cash%20Flow%20Analysis) This section provides an analysis of the company's cash flow changes across operating, investing, and financing activities - Net cash used in operating activities was **$1.3 million** for H1 2025, a significant decrease from **$5.5 million** provided by operations in H1 2024, primarily due to a higher net loss[295](index=295&type=chunk) - Net cash used in investing activities increased to **$10.2 million** in H1 2025 from **$1.4 million** in H1 2024, mainly due to a **$9.0 million** increase in capital expenditures[296](index=296&type=chunk) - Net cash provided by financing activities increased to **$16.5 million** in H1 2025 from **$2.5 million** in H1 2024, driven by higher net proceeds from debt and lower cash redemptions and dividends for preferred stock[297](index=297&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations and fund operations, including sources and uses of capital - The company's principal demands for funds include asset acquisitions, property development, debt service, and preferred stock distributions/redemptions[298](index=298&type=chunk) - The company plans to satisfy some or all redemption requests for its Preferred Stock with shares of Common Stock during 2025 to preserve liquidity[304](index=304&type=chunk) - In June 2025, a subsidiary entered into a new **$20.0 million** revolving credit facility secured by SBA 7(a) loans, with **$8.3 million** outstanding and no additional availability as of June 30, 2025[313](index=313&type=chunk) - The company regained compliance with the Nasdaq minimum bid price requirement in April 2025 but notes that maintaining compliance is not guaranteed[308](index=308&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate fluctuations, and its strategies for mitigation - As of June 30, 2025, **17.7%** (**$96.0 million**) of the company's debt was floating rate[331](index=331&type=chunk) - A **50 basis point** change in the SOFR interest rate would impact annual earnings by approximately **$0.48 million**[331](index=331&type=chunk) - The company utilizes interest rate cap agreements with a total notional amount of **$176.8 million** to manage its exposure to interest rate fluctuations[332](index=332&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[334](index=334&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended June 30, 2025[335](index=335&type=chunk) PART II. Other Information This section provides additional information including legal proceedings, risk factors, equity sales, and other relevant disclosures [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings beyond routine litigation arising in the ordinary course of business - The company states it is not currently involved in any material pending or threatened legal proceedings outside of routine litigation incidental to its business[337](index=337&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K were reported - No material changes to the risk factors disclosed in the 2024 Form 10-K were reported[338](index=338&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company made no common stock repurchases during the three and six months ended June 30, 2025, under its $10.0 million share repurchase program - No common stock repurchases were made during the three and six months ended June 30, 2025[339](index=339&type=chunk) - As of June 30, 2025, the company has repurchased a total of **2,650** shares for **$4.7 million** under its existing share repurchase program[339](index=339&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) The company plans to delist its Common Stock from the Tel Aviv Stock Exchange by August 15, 2025, while maintaining its Nasdaq Capital Market listing - The company has filed to voluntarily delist its Common Stock from the Tel Aviv Stock Exchange (TASE), with the delisting expected to be effective on **August 15, 2025**[344](index=344&type=chunk) - The company's common stock will continue to be listed for trading on the Nasdaq Capital Market[344](index=344&type=chunk)

Financial Data and Key Metrics Changes - The company's core FFO was negative $7,200,000, and overall net operating income decreased to $9,800,000 from $11,800,000 in the prior quarter [12][21] - The overall segment NOI was $9,800,000 in Q2 2025, compared to $16,200,000 in the prior year, a decrease of $6,400,000 [21] - FFO was negative $7,900,000 or negative $10.42 per diluted share compared to negative $3,300,000 or negative $33.46 per diluted share in the prior year [23] Business Line Data and Key Metrics Changes - The office segment NOI for Q2 2025 was $5,500,000, down from $8,900,000 in Q2 2024, primarily due to decreased rental revenue and occupancy [21][22] - Multifamily segment NOI was $189,000 in Q2 2025, compared to $2,300,000 in the prior year, driven by unrealized losses and decreased revenues [22] - Hotel segment NOI for Q2 2025 was $4,200,000, slightly down from $4,300,000 in the prior year, attributed to decreased food and beverage sales [22] Market Data and Key Metrics Changes - The company executed approximately 140,000 square feet of leases through July 2025, representing over a 55% increase from the prior year [5][6] - The office lease percentage was approximately 70% at the end of Q2 2025, and approximately 80% when excluding the Oakland office building [18] Company Strategy and Development Direction - The company is focused on improving its balance sheet and liquidity, enhancing property-level performance, and evaluating asset sales as part of its broader strategic plan [7][9] - Key areas of focus include growing the multifamily portion of the portfolio and executing renovations to improve asset performance [10][19] Management's Comments on Operating Environment and Future Outlook - Management believes there is a meaningful opportunity to grow NOI in 2026, supported by improved office leasing activity and completed renovations [14] - The company is encouraged by market improvements in the adjacent San Francisco market, which historically influences Oakland [6][11] Other Important Information - The company has successfully secured property-level financing on seven assets, allowing for the repayment of a recourse credit facility with a balance of approximately $169,000,000 at the end of 2024 [7][8] - A $20,000,000 revolving credit facility was closed to support lending division originations [8] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries [26]

Company Overview and Strategy - CIM Group, a real estate and infrastructure firm, manages CMCT and owns approximately 68% of its stock as of June 30, 2025[8, 12, 151] - CMCT focuses on acquiring, owning, operating, and developing creative office and premier multifamily assets in vibrant communities[15] - The company aims to strengthen its balance sheet and liquidity by extending debt maturities and financing growth initiatives[22, 23] - CMCT's strategy is designed to benefit from the trend toward a more cohesive work/live lifestyle[33] Portfolio Composition and Performance - CMCT's office portfolio is 701% leased in aggregate, consisting of 12 Class A and creative office properties[21] - The company owns 4 premier Class A multifamily properties with 764 total units and has 1 premier Class A multifamily property under development with 36 units[18] - As of June 30, 2025, the total office portfolio's rentable square footage is 1299518 with an overall occupancy rate of 681%[60] - The total multifamily portfolio consists of 764 units with an occupancy rate of 834% and an annualized rent of $18793 thousand[66] Financial Activities and Debt Management - In April 2025, CMCT fully repaid and retired its recourse credit facility after completing 4 new financings across 7 properties[30] - As of June 30, 2025, the company's total debt stood at $5407 million, with a mix of fixed and variable rate mortgages[166] - The company's fixed-rate mortgages payable range from 414% to 741% interest, while variable rate mortgages are based on SOFR plus a margin[166]

Report Overview [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported a Q2 2025 net loss of $(14.3) million and Core FFO of $(7.2) million while executing key leasing and financing activities Q2 2025 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(14.3) million | $(18.94) | | Funds from Operations (FFO) | $(7.9) million | $(10.42) | | Core FFO | $(7.2) million | $(9.53) | - The company's same-store office portfolio was **70.1% leased**, with **47,859 square feet** of new leases executed with terms longer than 12 months[7](index=7&type=chunk) - In April 2025, the company closed a **$35.5 million mortgage**, using proceeds to repay all outstanding obligations under its 2022 Credit Facility[7](index=7&type=chunk) - In June 2025, a subsidiary secured a **$20.0 million revolving credit facility** backed by its SBA 7(a) loans receivable portfolio[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted progress in its strategic plan, focusing on multifamily assets, balance sheet strength, and increased office leasing activity - The company is accelerating its focus towards **premier multifamily assets**, strengthening its balance sheet, and improving liquidity[4](index=4&type=chunk) - Since September 2024, the company has completed **four refinancings**, extended debt maturities on two multifamily assets, and fully repaid its recourse credit facility[5](index=5&type=chunk) - Office leasing activity has increased, with **78,192 square feet leased** in the first half of 2025 and an additional **61,747 square feet** in July[6](index=6&type=chunk) - Hotel segment NOI increased approximately **5.5%** in the first half of 2025 following the renovation of all 505 hotel rooms[6](index=6&type=chunk) Financial and Operating Performance [Overall Financial Results (Q2 2025)](index=2&type=section&id=Overall%20Financial%20Results%20(Q2%202025)) The company's Q2 2025 net loss widened to $(14.3) million, driven by lower segment NOI and higher interest expense Q2 Financial Results Comparison (2025 vs. 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(14.3) million | $(9.7) million | | Net Loss per Diluted Share | $(18.94) | $(98.64) | | FFO Attributable to Common Stockholders | $(7.9) million | $(3.3) million | | FFO per Diluted Share | $(10.42) | $(33.46) | | Core FFO Attributable to Common Stockholders | $(7.2) million | $(2.1) million | | Core FFO per Diluted Share | $(9.53) | $(21.93) | - The increase in net loss was primarily caused by a **$6.4 million decrease in segment net operating income** and a **$1.3 million rise in interest expense**, partially offset by a $2.6 million decrease in redeemable preferred stock dividends[9](index=9&type=chunk) [Real Estate Portfolio Overview](index=2&type=section&id=Real%20Estate%20Portfolio%20Overview) As of June 30, 2025, the company's portfolio comprised 27 assets across office, multifamily, hotel, and development sites - The portfolio comprises **12 office properties** (~1.3 million rentable sq. ft.), **four multifamily properties (696 units)**, nine development sites, and one 505-room hotel[8](index=8&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Total segment NOI decreased to $9.8 million in Q2 2025 from $16.2 million in Q2 2024, with declines across most segments Total Segment NOI (Q2 2025 vs. Q2 2024) | Period | Total Segment NOI | | :--- | :--- | | Q2 2025 | $9.8 million | | Q2 2024 | $16.2 million | [Office Segment](index=2&type=section&id=Office%20Segment) Office segment same-store NOI decreased to $5.5 million from $8.9 million year-over-year due to reduced rental revenue and lower occupancy Office Segment Same-Store Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment NOI | $5.5 million | $8.9 million | | Cash NOI | $5.8 million | $9.9 million | | Occupancy | 68.1% | 83.5% (-1,540 bps) | | Leased Percentage | 70.3% | 82.5% (-1,220 bps) | | Annualized Rent per Occupied Sq. Ft. | $60.96 | $58.85 | [Hotel Segment](index=3&type=section&id=Hotel%20Segment) Hotel Segment NOI was $4.2 million, a slight decrease from $4.3 million in Q2 2024, with minor declines in occupancy and RevPAR Hotel Operating Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Occupancy | 78.4% | 79.9% | | Average Daily Rate (ADR) | $212.92 | $210.54 | | Revenue per Available Room (RevPAR) | $166.83 | $168.30 | [Multifamily Segment](index=3&type=section&id=Multifamily%20Segment) The Multifamily segment's NOI fell sharply to $189,000 from $2.3 million, impacted by an investment loss and lower property revenues - The decrease in multifamily segment NOI was driven by an **unrealized loss on investment** in real estate at an unconsolidated joint venture and a decrease in revenues at multifamily properties in Oakland, California[15](index=15&type=chunk) Multifamily Operating Metrics (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Occupancy | 83.4% | 92.5% | | Monthly Rent per Occupied Unit | $2,458 | $2,647 | | Net Monthly Rent per Occupied Unit | $2,284 | $2,469 | [Lending Segment](index=3&type=section&id=Lending%20Segment) The Lending segment reported an NOI loss of $47,000 for Q2 2025, compared to an income of $743,000 in Q2 2024 - The decrease in Lending segment NOI was primarily due to a decrease in interest income from loan payoffs and lower interest rates, as well as an increase in current expected credit losses[16](index=16&type=chunk) [Debt and Equity](index=3&type=section&id=Debt%20and%20Equity) The company executed a 1-for-25 reverse stock split and strengthened its financial position through new financing and debt repayment - A **1-for-25 reverse stock split** of the company's Common Stock became effective on April 15, 2025[17](index=17&type=chunk) - In April 2025, the company closed a **$35.5 million mortgage** and used the proceeds to repay and terminate the 2022 Credit Facility[18](index=18&type=chunk) - In June 2025, a subsidiary closed on a new **$20.0 million revolving credit facility**, which had an outstanding balance of $8.3 million as of June 30, 2025[19](index=19&type=chunk) [Dividends](index=4&type=section&id=Dividends) The company declared quarterly cash dividends for its Series A, Series A1, and Series D Preferred Stock for the second quarter of 2025 Q2 2025 Preferred Stock Dividends | Preferred Stock Series | Quarterly Dividend Amount per Share | | :--- | :--- | | Series A | $0.34375 | | Series A1 | $0.426875 | | Series D | $0.353125 | Financial Statements [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets stood at $885.0 million, while total liabilities increased, leading to lower total equity Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $885,024 | $889,555 | | Debt, net | $535,605 | $505,732 | | Total Liabilities | $584,250 | $562,492 | | Total Equity | $288,270 | $306,264 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues declined to $29.7 million while expenses rose, resulting in a net loss attributable to the company of $(9.0) million Selected Income Statement Data (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $29,689 | $34,439 | | Total Expenses | $38,245 | $36,126 | | Net Loss | $(9,151) | $(852) | | Net Loss Attributable to Common Stockholders | $(14,279) | $(9,667) | Non-GAAP Financial Measures & Reconciliations [Funds from Operations (FFO)](index=10&type=section&id=Funds%20from%20Operations%20(FFO)) FFO attributable to common stockholders for Q2 2025 was $(7.9) million, a decline from $(3.3) million in Q2 2024 FFO Reconciliation Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(14,279) | $(9,667) | | Adjustments (Depreciation, Impairment, etc.) | $6,426 | $6,388 | | **FFO attributable to common stockholders** | **$(7,853)** | **$(3,279)** | [Core Funds from Operations (Core FFO)](index=11&type=section&id=Core%20Funds%20from%20Operations%20(Core%20FFO)) Core FFO for Q2 2025 was $(7.2) million, compared to $(2.1) million in the prior-year quarter Core FFO Reconciliation Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO attributable to common stockholders | $(7,853) | $(3,279) | | Adjustments (Debt Extinguishment, Transaction Costs, etc.) | $670 | $1,130 | | **Core FFO attributable to common stockholders** | **$(7,183)** | **$(2,149)** | [Net Operating Income (NOI)](index=12&type=section&id=Net%20Operating%20Income%20(NOI)) Total Segment NOI for Q2 2025 was $9.8 million, a decrease from $16.2 million in Q2 2024 Segment NOI Breakdown (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Office | $5,519 | $8,908 | | Hotel | $4,158 | $4,320 | | Multifamily | $189 | $2,252 | | Lending | $(47) | $743 | | **Total Segment NOI** | **$9,819** | **$16,223** |