Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One): ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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) (State ...

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]

Exhibit 99.1 Creative Media & Community Trust Corporation Reports 2025 Second Quarter Results Dallas—(August 13, 2025) Creative Media & Community Trust Corporation (NASDAQ and TASE: CMCT) ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended June 30, 2025. First Quarter 2025 Highlights Real Estate Portfolio • Net loss attributable to common stockholders of $(14.3) million, or $(18.94) per diluted share. • Funds from operations attributable to common stockholders ...

```markdown [PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section covers the unaudited financial statements, management's analysis, 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 for Q1 2025 and 2024, covering balance sheets, operations, equity, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show a slight decrease in total assets from $889.6 million to $882.3 million as of March 31, 2025 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$882,343** | **$889,555** | | Investments in real estate, net | $706,537 | $709,194 | | Cash and cash equivalents | $19,772 | $20,262 | | **Total Liabilities** | **$566,909** | **$562,492** | | Debt, net | $512,658 | $505,732 | | **Total Equity** | **$294,635** | **$306,264** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported a net loss of $6.3 million, an increase from $3.9 million in Q1 2024 Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $32,295 | $33,998 | | Total Expenses | $37,295 | $37,307 | | **Net Loss** | **$(6,272)** | **$(3,905)** | | Net Loss Attributable to the Company | $(6,114) | $(3,730) | | Redeemable preferred stock dividends | $(5,484) | $(7,759) | | **Net Loss Attributable to Common Stockholders** | **$(11,898)** | **$(12,295)** | | **Basic & Diluted EPS** | **$(20.73)** | **$(125.46)** | [Consolidated Statements of Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity decreased from $306.3 million to $294.6 million in Q1 2025, driven by net loss and dividends - Key activities impacting equity in Q1 2025 included a net loss of **$6.1 million**, payment of preferred stock dividends totaling **$5.5 million**, and the redemption of Series A and A1 preferred stock paid for with common stock[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $1.2 million in Q1 2025, while investing activities used $5.2 million Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,208 | $1,616 | | Net Cash Used in Investing Activities | $(5,157) | $(393) | | Net Cash Provided by Financing Activities | $206 | $191 | | **Net (Decrease) Increase in Cash** | **$(3,743)** | **$1,414** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, **REIT** structure, reverse stock splits, debt, and related-party transactions - The company is a **REIT** primarily focused on acquiring, developing, and operating multifamily and Class A/creative office properties, and also owns a hotel and an SBA lending platform[17](index=17&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 All share and per-share amounts are adjusted retroactively[19](index=19&type=chunk)[21](index=21&type=chunk) - The company recorded a loss of **$1.2 million** from its investments in unconsolidated joint ventures for Q1 2025, a significant increase from the **$0.3 million** loss in Q1 2024[81](index=81&type=chunk) - As of March 31, 2025, the company was **not in compliance with two covenants** under its 2022 Credit Facility The facility was subsequently **paid off in full and terminated** in April 2025 following a refinancing[100](index=100&type=chunk)[102](index=102&type=chunk) - The company plans to **continue satisfying some or all redemption requests for its preferred stock with shares of common stock** in 2025[139](index=139&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, strategic shift to multifamily properties, and liquidity - The company's strategy is to increase its focus on premier multifamily properties, leveraging CIM Group's expertise and using an asset-light, co-investment approach to reduce capital outlay and risk[207](index=207&type=chunk)[208](index=208&type=chunk) Portfolio Occupancy and Rental Trends | Portfolio | Metric | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | :--- | | **Office** | Occupancy | **70.2%** | **83.4%** | | | Ann. Rent/SqFt | **$61.14** | **$58.17** | | **Multifamily** | Occupancy | **80.2%** | **86.2%** | | | Monthly Rent/Unit | **$2,461** | **$2,737** | | **Hotel** | RevPAR | **$176.47** | **$166.84** | - Net loss for Q1 2025 increased to **$6.3 million** from **$3.9 million** in Q1 2024, driven by a **$1.9 million** decrease in segment net operating income and a **$1.1 million** increase in interest expense[228](index=228&type=chunk) - FFO attributable to common stockholders improved to **$(5.4) million** in Q1 2025 from **$(5.9) million** in Q1 2024, mainly due to a **$2.3 million** decrease in redeemable preferred stock dividends declared[232](index=232&type=chunk) - In April 2025, the company refinanced an Austin office property and used the proceeds to fully repay and terminate its **$15.0 million** 2022 Credit Facility, under which it had been out of compliance with certain covenants[262](index=262&type=chunk)[271](index=271&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk with 13.3% of debt floating, impacting earnings by $343 thousand per 50 bps - As of March 31, 2025, **86.7%** of the company's debt was fixed-rate, while **13.3%** was floating-rate[289](index=289&type=chunk) - A hypothetical **50 basis point** (**0.50%**) change in the SOFR interest rate would impact annual earnings by approximately **$343 thousand** based on the floating rate debt outstanding at March 31, 2025[289](index=289&type=chunk) - The company held two interest rate cap agreements with a total notional amount of **$175.8 million** to hedge against interest rate movements[290](index=290&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were **effective as of March 31, 2025**, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were **effective as of March 31, 2025**[292](index=292&type=chunk) - **No changes** occurred during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[293](index=293&type=chunk) [PART II. Other Information](index=55&type=section&id=PART%20II.%20Other%20Information) This section includes disclosures on legal proceedings, risk factors, equity sales, and other general information [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings beyond routine business litigation - The company reports **no material pending or threatened legal proceedings** outside of the ordinary course of business[296](index=296&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) **No material changes to risk factors** from the Annual Report on Form 10-K for the year ended December 31, 2024 are reported - **No material changes to risk factors** from the Annual Report on Form 10-K for the year ended December 31, 2024 are reported[297](index=297&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q1 2025 under its $10.0 million repurchase program - There were **no common stock repurchases** during the three months ended March 31, 2025[298](index=298&type=chunk) [Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported **no defaults upon senior securities** - **None**[299](index=299&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is **not applicable** to the company - **Not applicable**[300](index=300&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company initiated **voluntary delisting of its Common Stock from the Tel Aviv Stock Exchange** on May 8, 2025 - On May 8, 2025, the company filed a notice to **voluntarily delist its Common Stock from the Tel Aviv Stock Exchange (TASE)**, citing a low trading volume The delisting is expected to be effective three months from the notice date[303](index=303&type=chunk) - The company's common stock will **continue to be listed for trading on the Nasdaq Capital Market**[303](index=303&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments and loan agreements ```

Financial Data and Key Metrics Changes - The company fully repaid its recourse corporate level credit facility, which had a balance of approximately $169 million [5] - Core FFO improved by approximately $1.9 million from the prior quarter, primarily due to higher net operating income and lower preferred dividends [7] - Net operating income (NOI) increased by approximately $2.6 million from the prior quarter, driven by improvements at the hotel [8] - Core FFO was negative $5.1 million or negative $8.85 per diluted share compared to negative $4.4 million or negative $45.15 per diluted share in the prior year comparable period [19] Business Line Data and Key Metrics Changes - Hotel NOI increased by 15% year over year, reaching $4.7 million in Q1 2025 compared to $4.1 million in the prior year [18] - Office segment NOI decreased to $7.1 million in Q1 2025 from $7.9 million in Q1 2024, driven by lower rental revenue in Oakland [17] - Multifamily segment reported an operating loss of $620,000 in Q1 2025 compared to income of $917,000 in the prior year, primarily due to an unrealized loss on investment [18] - Lending division NOI decreased to $590,000 from $789,000 in the prior year, mainly due to lower interest income [19] Market Data and Key Metrics Changes - The office lease percentage was 71.4% at the end of the quarter, and 83% when excluding the Oakland property [14] - Multifamily occupancy at 701 South Hudson reached approximately 41% at the end of the quarter, up from 22% at year-end [11] - The company anticipates a recovery in the Oakland residential market, although it may take time due to economic headwinds [13] Company Strategy and Development Direction - The company is focused on improving its balance sheet and liquidity while accelerating its focus on premier multifamily assets [5] - The company has four operating multifamily assets and is actively evaluating potential asset sales to strengthen its balance sheet [6] - A joint venture for a 36-unit multifamily development in Echo Park is underway, expected to begin lease-up in the third quarter [12] Management's Comments on Operating Environment and Future Outlook - Management noted the challenges in the office financing environment but expressed confidence in the completed refinancing program [5] - The company sees significant opportunities to grow multifamily net operating income through improved occupancy and market rents [10] - Management remains optimistic about the hotel asset's positioning heading into 2026 following renovations [15] Other Important Information - The company completed a refinancing on its office property in Austin, Texas, using proceeds to pay off its credit facility [20] - A one-for-25 reverse stock split was approved by shareholders and executed on April 15 [20] Q&A Session Summary Question: No questions were raised during the Q&A session - The call concluded without any questions from participants [21]

Financial Data and Key Metrics Changes - Core FFO improved by approximately $1,900,000 from the prior quarter, primarily due to higher net operating income and lower preferred dividends [8] - Net operating income increased by approximately $2,600,000 from the prior quarter, driven by a $2,600,000 improvement at the hotel [8] - First quarter NOI at the hotel increased 15% year over year [9] - FFO was negative $5,400,000 or negative $9.42 per diluted share compared to negative $5,900,000 or negative $60.42 per diluted share in the prior year [19] - Core FFO was negative $5,100,000 or negative $8.85 per diluted share compared to negative $4,400,000 or negative $45.15 per diluted share in the prior year [19] Business Line Data and Key Metrics Changes - Multifamily NOI decreased by $1,500,000 from the prior quarter due to lower occupancy [9] - Office NOI improved by $1,900,000 from the prior quarter, with increased leasing activity particularly in Los Angeles and Austin [9] - Hotel segment NOI for Q1 2025 was $4,700,000 compared to $4,100,000 in the prior year, driven by increased occupancy and average daily rate [19] - Lending NOI declined to $590,000 from $789,000 in the prior year, primarily due to decreased interest income [19] Market Data and Key Metrics Changes - Multifamily occupancy at 701 South Hudson reached approximately 41% at the end of the quarter, up from 22% at year-end [11] - Office lease percentage was 71.4% at the end of the quarter, and 83% when excluding the Oakland office [14] - The Oakland residential market recovery is expected to take time due to broader economic headwinds and local market dynamics [13] Company Strategy and Development Direction - The company is focused on improving its balance sheet and liquidity while accelerating its focus on premier multifamily assets [5] - The company has fully repaid its recourse corporate level credit facility, enhancing financial flexibility [6] - The company is actively evaluating potential asset sales to strengthen its balance sheet and grow its multifamily portfolio [8] Management's Comments on Operating Environment and Future Outlook - Management noted significant opportunities to grow multifamily net operating income through improving occupancy and marketing rents [10] - The company anticipates starting a renovation of the public space at the hotel later this year, positioning the asset well for 2026 [15] - Management expressed optimism about the leasing activity in Los Angeles and Austin, indicating a positive trend in the office segment [14] Other Important Information - The company completed a refinancing on its office property in Austin, Texas, using a portion of the proceeds to pay off its credit facility [20] - A one-for-25 reverse split of common stock was approved by shareholders [20] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the conference call [21]

[First Quarter 2025 Results](index=1&type=section&id=First%20Quarter%202025%20Results) [Overview and Management Commentary](index=1&type=section&id=Management%20Commentary) CMCT advanced its multifamily strategy in Q1 2025, repaying its $169 million credit facility, securing new office leases, and boosting hotel NOI - The company is accelerating its focus on **premier multifamily assets**, strengthening its balance sheet, and improving liquidity[4](index=4&type=chunk) - Completed the full repayment and retirement of the **$169 million recourse corporate-level credit facility** in early April 2025[5](index=5&type=chunk) - Executed over **30,000 square feet of office leases** in Q1 2025 and saw a **15% YoY increase in hotel segment net operating income**[5](index=5&type=chunk) - A **1-for-25 reverse stock split** of Common Stock became effective on April 15, 2025 All share and per-share amounts in the report are adjusted retroactively[2](index=2&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Results) CMCT reported a net loss of **$(11.9) million** in Q1 2025, an improvement from Q1 2024, driven by lower preferred stock dividends and transaction costs Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(11.9) million | $(12.3) million | | Diluted EPS | $(20.73) | $(125.46) | | FFO Attributable to Common Stockholders | $(5.4) million | $(5.9) million | | Core FFO Attributable to Common Stockholders | $(5.1) million | $(4.4) million | - The decrease in net loss was driven by a **$2.3 million decrease in redeemable preferred stock dividends** and a **$664,000 decrease in transaction-related costs** These were partially offset by a **$1.9 million decrease in segment NOI** and a **$1.1 million increase in interest expense**[8](index=8&type=chunk) - As of March 31, 2025, the real estate portfolio consisted of **27 assets**, including 12 office properties, 4 multifamily properties, 9 development sites, and one 505-room hotel[7](index=7&type=chunk) [Segment Information](index=2&type=section&id=Segment%20Information) [Office Segment](index=2&type=section&id=Office) The office segment's same-store NOI declined to **$7.1 million** in Q1 2025, primarily due to lower occupancy at an Oakland property, despite increased annualized rent per occupied square foot Same-Store Office Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Segment NOI | $7.1 million | $7.9 million | | Cash NOI | $7.8 million | $8.8 million | | Occupancy | 70.2% | 83.0% | | Leased | 71.4% | 83.7% | | Annualized Rent per Occupied Sq. Ft. | $61.23 | $58.30 | - The decrease in same-store office NOI was primarily due to lower rental revenue at the Oakland, California office property, resulting from a large tenant exercising a partial lease termination option[10](index=10&type=chunk) - During Q1 2025, the company executed **30,333 square feet of new leases** with terms longer than 12 months in its same-store office portfolio[10](index=10&type=chunk) [Hotel Segment](index=3&type=section&id=Hotel) The hotel segment demonstrated strong performance in Q1 2025, with Segment NOI increasing to **$4.7 million** driven by higher occupancy and average daily rate - Hotel Segment NOI increased to **$4.7 million** for Q1 2025, up from **$4.1 million** in Q1 2024, due to higher occupancy and average daily rate[13](index=13&type=chunk) Hotel Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Occupancy | 80.0% | 79.0% | | Average Daily Rate (ADR) | $220.57 | $211.06 | | Revenue per Available Room (RevPAR) | $176.47 | $166.84 | [Multifamily Segment](index=3&type=section&id=Multifamily) The multifamily segment reported an NOI loss of **$(620,000)** in Q1 2025, primarily due to an unrealized loss on a joint venture investment, alongside decreased occupancy and monthly rent - Multifamily segment NOI was a loss of **$(620,000)** in Q1 2025, a sharp decrease from income of **$917,000** in Q1 2024 This was mainly due to an unrealized loss on an investment in one of the unconsolidated joint ventures[15](index=15&type=chunk) Multifamily Metrics (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Occupancy | 80.2% | 86.2% | | Monthly Rent per Occupied Unit | $2,461 | $2,737 | [Lending Segment](index=3&type=section&id=Lending) The lending segment's NOI decreased to **$590,000** in Q1 2025, primarily due to lower interest income from loan payoffs and reduced interest rates - Lending segment NOI decreased to **$590,000** for Q1 2025, compared to **$789,000** for the same period in 2024[16](index=16&type=chunk) - The decrease in lending NOI was primarily due to lower interest income from loan payoffs and lower interest rates[16](index=16&type=chunk) [Capital Structure and Dividends](index=3&type=section&id=Capital%20Structure%20and%20Dividends) [Debt and Equity Activities](index=3&type=section&id=Debt%20and%20Equity) The company executed significant financing activities, including closing **$5.0 million** and **$35.5 million** mortgages, and issued **288,427 shares** of Common Stock through preferred stock redemptions - On April 3, 2025, the company closed a **$35.5 million mortgage** on an office property in Austin, Texas, and used the proceeds to repay all outstanding obligations under the 2022 Credit Facility, which was then terminated[17](index=17&type=chunk) - In Q1 2025, the company closed a **$5.0 million variable-rate mortgage loan** on an office property in Los Angeles, California[17](index=17&type=chunk) - Redemptions of Series A1 and Series A Preferred Stock resulted in the issuance of **288,427 shares of Common Stock** during Q1 2025[16](index=16&type=chunk) [Preferred Stock Dividends](index=4&type=section&id=Dividends) The company declared quarterly cash dividends for its Series A, Series A1, and Series D Preferred Stock, payable on April 15, 2025 Quarterly Dividend per Share | Series | Dividend Amount | | :--- | :--- | | Series A Preferred Stock | $0.34375 | | Series A1 Preferred Stock | $0.44250 | | Series D Preferred Stock | $0.353125 | [Financial Statements](index=8&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=8&type=section&id=CREATIVE%20MEDIA%20%26%20COMMUNITY%20TRUST%20CORPORATION%20AND%20SUBSIDIARIES%20Consolidated%20Balance%20Sheets) As of March 31, 2025, CMCT's total assets were **$882.3 million**, with total liabilities at **$566.9 million** and total equity at **$294.6 million**, reflecting slight changes from year-end 2024 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $882,343 | $889,555 | | Total Liabilities | $566,909 | $562,492 | | Total Equity | $294,635 | $306,264 | [Consolidated Statements of Operations](index=9&type=section&id=CREATIVE%20MEDIA%20%26%20COMMUNITY%20TRUST%20CORPORATION%20AND%20SUBSIDIARIES%20Consolidated%20Statements%20of%20Operations) In Q1 2025, total revenues were **$32.3 million**, resulting in a net loss of **$(6.3) million** and a net loss attributable to common stockholders of **$(11.9) million** Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $32,295 | $33,998 | | Total Expenses | $37,295 | $37,307 | | Net Loss | $(6,272) | $(3,905) | | Net Loss Attributable to Common Stockholders | $(11,898) | $(12,295) | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Funds from Operations (FFO)](index=10&type=section&id=Funds%20from%20Operations%20Attributable%20to%20Common%20Stockholders) FFO attributable to common stockholders for Q1 2025 improved to **$(5.4) million**, or **$(9.42) per diluted share**, after adjusting net loss for depreciation and amortization FFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(11,898) | $(12,295) | | Depreciation and amortization | 6,560 | 6,478 | | FFO attributable to common stockholders | $(5,405) | $(5,921) | [Core Funds from Operations (Core FFO)](index=11&type=section&id=Core%20Funds%20from%20Operations%20Attributable%20to%20Common%20Stockholders) Core FFO attributable to common stockholders declined to **$(5.1) million**, or **$(8.85) per diluted share**, in Q1 2025, after further adjustments to FFO Core FFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | FFO attributable to common stockholders | $(5,405) | $(5,921) | | Redeemable preferred stock redemptions | 300 | 806 | | Transaction-related costs | 26 | 690 | | Core FFO attributable to common stockholders | $(5,079) | $(4,425) | [Net Operating Income (NOI)](index=12&type=section&id=Reconciliation%20of%20Net%20Operating%20Income) Total segment NOI decreased to **$11.8 million** in Q1 2025, primarily due to lower Office and Multifamily NOI, partially offset by Hotel segment growth Segment Net Operating Income (NOI) (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Office | $7,101 | $7,865 | | Hotel | $4,684 | $4,062 | | Multifamily | $(620) | $917 | | Lending | $590 | $789 | | **Total Segment NOI** | **$11,755** | **$13,633** | [Forward-Looking Statements](index=7&type=section&id=FORWARD-LOOKING%20STATEMENTS) This press release contains forward-looking statements regarding management's plans and objectives, which are subject to various risks and uncertainties - This press release contains forward-looking statements regarding management's plans and objectives, which are subject to various risks and uncertainties These statements are not guarantees of future performance and actual results could differ materially[30](index=30&type=chunk)

Management and Operations - The company relies on the Administrator and Operator for management and administration services, which are critical for its operations [88]. - The company faces risks related to the departure of key personnel from the Administrator and Operator, which could adversely affect its financial condition and results [90]. - The Master Services Agreement with the Administrator renews automatically each year, limiting the company's ability to terminate it without cause [105]. - The Administrator and Operator receive fees regardless of the company's performance, which may reduce their incentive to seek profitable opportunities [107]. - The Administrator and Operator have broad discretion over day-to-day operations and capital deployment, which may not always align with stockholder interests [111]. - Conflicts of interest may arise as directors and executive officers hold positions with the Operator and Administrator, potentially affecting decisions made in the best interest of stockholders [114]. Financial Risks and Performance - The company carries commercial liability and business interruption insurance, but there is no assurance that it will not experience uninsured losses [94]. - The company may incur substantial costs if it seeks to internalize management functions, with uncertain outcomes regarding key personnel retention [92]. - The company may experience poor performance or losses due to limited liability of its Administrator and Operator under the Master Services Agreement [134]. - The company’s Board of Directors can revoke its REIT election without stockholder approval, which could adversely affect total returns to stockholders [130]. - The company may incur substantial costs in protecting its assets if a significant tenant defaults [145]. - The company may not generate sufficient cash flow to meet its debt service obligations, which could impact its ability to fund operations and capital expenditures [216]. - If the company incurs additional indebtedness for future projects, its debt service obligations could increase, potentially limiting its ability to make distributions [218]. Market and Economic Conditions - The COVID-19 pandemic has led to long-term changes in workplace practices, potentially decreasing demand for office space and impacting rental income [102]. - The company is subject to risks associated with the real estate industry, including adverse changes in economic conditions and increased vacancies [137]. - A significant portion of the company's properties are located in California, exposing it to greater economic risks and regulatory challenges [139]. - The company anticipates significant competition in the office real estate market, which may pressure rental rates and occupancy levels [177]. - The performance of the lodging industry is closely linked to the general economy and U.S. GDP growth [149]. - Market conditions, including financial market deterioration, could impact credit availability and the ability to meet debt obligations, affecting overall financial health [172]. Regulatory and Compliance Risks - The Maryland Business Combination Act may restrict third parties from acquiring control without Board approval, potentially limiting stockholder opportunities [119]. - The company has opted out of certain provisions of the Maryland Control Share Acquisition Act, which could affect voting rights in control share acquisitions [124]. - The company has implemented takeover defenses, including a two-thirds vote requirement to remove a director, which may limit stockholder influence [125]. - Compliance with the Americans with Disabilities Act (ADA) and other regulations may require unanticipated expenditures, impacting cash available for distributions [192]. - Non-compliance with SBA regulations could result in liability being transferred back to the company's lending operations, adversely affecting financial condition [244]. Environmental and Climate Risks - The company’s operations are susceptible to natural disasters, particularly in California, which could significantly impact its properties and financial performance [96]. - The company faces risks from climate change, which could lead to increased costs for property insurance and energy, adversely affecting financial conditions [191]. - The company’s properties are primarily located in California, which is at risk of extreme weather due to climate change, potentially increasing operational costs [190]. - Environmental regulations may impose liability for contamination, which could result in significant costs for the company [184]. Debt and Financing - The company has incurred significant indebtedness and may incur additional debt to fund future acquisitions and operational needs [205]. - High interest rates may persist in 2025, making it difficult for the company to finance or refinance assets, potentially reducing the number of properties it can acquire [212]. - The company expects a continued high interest rate environment in 2025, which will increase the variable rate component of its indebtedness, adversely affecting cash flows and distributions [215]. - The company may be required to borrow funds or sell assets to fund dividends, potentially at unfavorable rates [259]. Tenant and Lease Risks - The company has a significant tenant concentration, with Kaiser accounting for 22.9% of its annualized rental income for the year ended December 31, 2024 [143]. - 29.0% of the rentable square footage of the office portfolio was available for lease as of December 31, 2024 [148]. - 11.9% of the occupied square footage of office properties is scheduled to expire in 2025 [148]. - The company may face challenges in renewing leases or releasing apartment units at favorable terms [158]. - The company may be adversely affected by trends in the office real estate industry, such as telecommuting and shared office spaces [147]. Investment Strategy and Growth - The company is focused on Class A and creative office assets but may expand into multifamily residential and real estate debt to broaden its investment strategy [129]. - The company may be unable to deploy capital effectively for growth due to competition and market conditions [159]. - Changes in the Operator's acquisition process may result in inferior due diligence and transaction standards, negatively impacting asset performance [129]. Lending Operations - The company’s lending operations are concentrated in the hospitality industry, which exposes it to significant risks from economic downturns and other adverse events [232]. - The company’s SBA 7(a) Program loans are subject to delinquency and foreclosure risks, particularly due to the nature of the hospitality industry [236]. - The company has achieved national preferred lender program (PLP) status, allowing expedited loan processing without prior SBA review [243]. - Defaults on SBA 7(a) Program loans could materially adversely affect the company's business, financial condition, and cash flow [240]. Stockholder Rights and Dividends - The rights of Common Stock holders to receive dividends rank junior to those of Preferred Stock holders [277]. - Upon liquidation, Preferred Stock holders are entitled to receive a liquidation preference before any distribution to Common Stock holders [278]. - The company may pay required dividends in shares of stock rather than cash, leading to potential tax liabilities for stockholders [264]. - Delays in deploying capital may adversely affect the company's ability to pay distributions on Common and Preferred Stock [284]. - Cash distributions to holders of Preferred and Common Stock may be less frequent or lower than expected, depending on various factors [285].

Financial Data and Key Metrics Changes - Core FFO improved by approximately $4.5 million from the prior quarter primarily due to higher NOI, lower interest expense, and lower preferred dividends [11] - Net operating income (NOI) increased by $1.6 million from the third quarter, mainly driven by the Hotel Segment which increased by $1.1 million [11] - FFO was negative $8.7 million or negative $0.93 per diluted share compared to negative $9.9 million or negative $4.07 per diluted share in the prior year [27] - Core FFO was negative $7 million or negative $0.75 per diluted share compared to negative $8.4 million or negative $3.46 per diluted share in the prior year [27] Business Line Data and Key Metrics Changes - Hotel operations experienced a decrease in NOI of approximately $828,000, resulting in $2.1 million for Q4 2024 compared to $2.9 million in the prior year [26] - Multifamily segment reported NOI of approximately $855,000 during Q4 2024, down from approximately $1.1 million in the prior year [25] - Office segment NOI for Q4 2024 was $5.2 million versus $5.4 million during Q4 2023, driven by a decrease in rental revenue at the Oakland property [24] Market Data and Key Metrics Changes - Total occupancy in the multifamily segment declined about 220 basis points from the prior quarter but increased 240 basis points year-over-year [17] - Office lease percentage was 71% at the end of Q4, and 82% when excluding one office building in Oakland [20] Company Strategy and Development Direction - Company remains focused on improving balance sheet and liquidity, growing multifamily portfolio, and reducing traditional office assets [7] - Significant progress made in reducing corporate debt, with the balance on the credit facility down to $15 million from $169 million [9] - Company is evaluating asset sales to strengthen balance sheet and improve liquidity [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for financing office properties but expressed optimism about progress made in refinancing and reducing debt [9] - Leasing activity has been steadily picking up, particularly in L.A. and Austin assets, despite work-from-home trends impacting occupancy [21] Other Important Information - Company is seeking shareholder approval for a 1 for 25 reverse stock split to improve stock price following recent preferred common redemptions [28] - Renovation projects are underway, including a $21 million room renovation at the Sheraton Grand Hotel [14] Q&A Session Summary - No questions were raised during the Q&A session [29]