Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 15

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 15
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 operating segments, increased to $9.6 million for the three months ended September 30, 2025, compared to $8.8 million for the three months ended September 30, 2024. The increase was primarily attributable to a higher average outstanding principal balance on our debt as a result of new mortgage loans closed during the fourth quarter of 2024 and first and second quarters of 2025, partially offset by paydowns on our 2022 Credit Facility and on one of our mortgages.

General and Administrative Expenses: General and administrative expenses, which have not been allocated to our operating segments, decreased to $1.2 million for the three months ended September 30, 2025, compared with $1.4 million for 

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the three months ended September 30, 2024. The decrease was primarily due to a decrease in legal fees, partially offset by an increase in stockholder services. 

Transaction-Related Costs: Transaction costs were $598,000 for the three months ended September 30, 2025, generally consistent with $526,000 for such costs for the three months ended September 30, 2024. 

Depreciation and Amortization Expense: Depreciation and amortization expense was $7.3 million for the three months ended September 30, 2025, compared with $6.4 million for the three months ended September 30, 2024. The increase is due to incremental increases to the depreciable asset base at our hotel property as a result of renovation projects.

Gain on Sale of Real Estate: Gain on sale of real estate was $679,000 for the nine months ended September 30, 2025, due to the sale of a land parcel in Oakland, California. There were no dispositions during the prior year period.

Provision for Income Taxes: Provision for income taxes was $74,000 for the three months ended September 30, 2025, compared to provision for income taxes of $15,000 for the three months ended September 30, 2024. The increase in provision for income taxes was a result of one of our taxable REIT subsidiaries writing off the receivable for a refund of Alternative Minimum Tax that the company no longer believes is more likely than not to be received from the Internal Revenue Service.

2025 Results of Operations

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 202