Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 9

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 9
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 entered into an agreement to sell our lending business to an unrelated third-party buyer for a purchase price of approximately $44 million (which is net of the outstanding balance of SBA 7(a) Loan-Backed Notes), subject to adjustment and updated information through the closing of the sale. Upon the closing of the sale, which is still subject to approval by the SBA, and giving effect to the payment of other debt, transaction expenses and other matters, we expect to receive net proceeds of approximately $31 million.

Property Concentration

Kaiser Foundation Health Plan, Incorporated, which occupied space in one of our Oakland, California properties, accounted for 24.5% of our annualized office rental income for the three months ended September 30, 2025. 

47

2025 Results of Operations

Overview

We are not aware of any material trends or uncertainties, other than national economic conditions affecting real estate in general, such as the effects of high unemployment rates, continued or renewed inflation, heightened interest rates, and any recession or slowdown in economic growth and any proposed or imposed tariffs by the U.S. government and retaliatory tariffs proposed or imposed by U.S. trading partners, that may reasonably be expected to have a material impact on our results from operations other than those listed in the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024. 

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024 

Net Loss and FFO

 Three Months Ended September 30,Change 20252024$% (dollars in thousands)Total revenues$26,234 $28,616 $(2,382)(8.3)%Total expenses$38,728 $37,938 $790 2.1 %Gain on sale of real estate$679 $— $679 N/ANet loss$(12,586)$(10,576)$(2,010)19.0 %

Net loss was $12.6 million for the three months ended September 30, 2025, compared to a net loss of $10.6 million for the three months ended September 30, 2024, an increase of $2.0 million. The increase in net loss was primarily due to a decrease of $617,000 in segment net operating income (discussed in more detail in the following Summary Segment