Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 22

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 22
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Transaction-Related Costs: Transaction-related costs were $1.4 million for both the nine months ended September 30, 2025 and 2024. 

Depreciation and Amortization Expense: Depreciation and amortization expense was $20.2 million for the nine months ended September 30, 2025, compared with $19.4 million for the nine months ended September 30, 2024. The increase is due to incremental increases to the depreciable asset base at our hotel property. 

Loss on Early Extinguishment of Debt: Loss on early extinguishment of debt was $88,000 for the nine months ended September 30, 2025 as a result of the payoff and termination of the 2022 Credit Facility. No such amounts were incurred during the prior year period.

Impairment of Real Estate: Impairment of real estate was $221,000 for the nine months ended September 30, 2025, due to an impairment charge recognized in connection with an office property in Austin, Texas. No such amounts were incurred during the prior year period.

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 $353,000 for the nine months ended September 30, 2025, compared with $573,000 for the nine months ended September 30, 2024. The increase was due to lower taxable income at our taxable REIT subsidiaries compared to the prior year period as well as 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.

Cash Flow Analysis

Our cash flows from operating activities are primarily dependent upon the real estate assets owned, occupancy level of our real estate assets, the rental rates achieved through our leases, the occupancy and ADR of our hotel, the collectability of rent and recoveries from our tenants, and loan-related activity. Our cash flows from operating activities are also impacted by fluctuations in operating expenses and other general and administrative costs. Net cash provided by operating activities was $2.5 million for the nine months ended September 30, 2025, as compared to net cash provided by