Company: CMCT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000908311-25-000067
Chunk: 162

Company: Creative Media & Community Trust Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 162
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 and early adoption is permitted. The Company is currently evaluating whether the adoption of ASU 2024-03 will have a material impact on its consolidated financial statements and disclosures.

14

Table of ContentsCREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2025 (Unaudited) – (Continued)

3. INVESTMENTS IN REAL ESTATEInvestments in real estate consist of the following (in thousands): June 30, 2025December 31, 2024Land$175,682 $175,682 Land improvements5,595 5,863 Buildings and improvements651,269 636,525 Furniture, fixtures, and equipment12,221 12,844 Tenant improvements16,038 26,942 Work in progress28,315 36,929 Investments in real estate889,120 894,785 Accumulated depreciation(184,345)(185,591)Net investments in real estate$704,775 $709,194 For both the three months ended June 30, 2025 and 2024, the Company recorded depreciation expense of $5.8 million. For both the six months ended June 30, 2025 and 2024, the Company recorded depreciation expense of $11.7 million.Impairment—The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate that the carrying value of certain of its investments in real estate may not be recoverable. See Note 2 for a discussion of the Company’s accounting policies regarding impairment of investments in real estate.During both the three and six months ended June 30, 2025, one office property in Austin, Texas, with a carrying value of $2.1 million, was deemed to be impaired and its carrying value was reduced to an estimated fair value of $1.9 million, resulting in impairment charges of $221,000, which were recorded in the consolidated statement of operations. The Company recorded no impairment charges during the three and six months ended June 30, 2024. See Note 2 for a discussion of the Company’s policies regarding impairment of real estate assets.  See Note 13 for a further discussion regarding these impairment charges during the three and six months ended June 30, 2025.

2025 and 2024 Transactions and Assets Held for