Financial Position and Stability - The company may incur significant additional indebtedness on a consolidated basis, which could impact financial stability[64]. - Higher market interest rates could lead to increased borrowing costs and potentially decrease funds available for distributions, adversely affecting the market price of common stock[82]. - The company may be unable to pay or maintain cash distributions or increase distributions to stockholders over time[98]. - The company may suffer from delays in deploying capital, adversely affecting its ability to pay distributions on common and preferred stock[87]. Compliance and Control - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2023, and determined it was effective based on established criteria[239]. - The independent auditor expressed an unqualified opinion on the consolidated financial statements for the year ended December 31, 2023[241]. - The company must ensure that at least 75% of the value of its assets consists of qualified REIT real estate assets to maintain REIT qualification[74]. - The company has restrictions on ownership and transfer of shares intended to maintain REIT qualification, which may inhibit market activity[90]. Operational Risks - The company relies on key personnel from the Administrator and Operator, and their departure could materially affect business operations[69]. - As of December 31, 2023, the company had one interest rate cap agreement with an aggregate notional amount of 491,000[236].
CMCT(CMCT) - 2023 Q4 - Annual Report