Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 126

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 126
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 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, 2024 

Net Loss and FFO

 Nine Months Ended September 30,Change 20252024$% (dollars in thousands)Total revenues$88,218 $97,053 $(8,835)(9.1)%Total expenses$114,268 $111,371 $2,897 2.6 %Gain on sale of real estate$679 $— $679 N/ANet loss$(28,009)$(15,333)$(12,676)82.7 %

Net loss was $28.0 million for the nine months ended September 30, 2025, compared to a net loss of $15.3 million for the nine months ended September 30, 2024, an increase of $12.7 million. The increase in net loss was primarily due to a decrease of $8.9 million in segment net operating income (discussed in more detail in the following Summary Segment Results) and an increase in interest expense of $3.2 million.

Funds from Operations

We believe that funds from operations (“FFO”), a non-GAAP measure, is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO represents net income (loss) attributable to common stockholders, computed in accordance with GAAP, which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gains (or losses) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (the “NAREIT”).

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