Company: CMCT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0000908311-25-000096
Chunk: 61

Company: Creative Media & Community Trust Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 61
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 2025December 31, 2024Land$175,201 $175,682 Land improvements5,595 5,863 Buildings and improvements651,912 636,525 Furniture, fixtures, and equipment20,022 12,844 Tenant improvements16,681 26,942 Work in progress23,198 36,929 Investments in real estate892,609 894,785 Accumulated depreciation(189,938)(185,591)Net investments in real estate$702,671 $709,194 For the three months ended September 30, 2025 and 2024, the Company recorded depreciation expense of $6.9 million and $5.9 million, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded depreciation expense of $18.6 million and $17.5 million, respectively. 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 the nine months ended months ended September 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 $0 and $221,000 during the three and nine months ended September 30, 2025, respectively. The Company recorded no impairment charges during the three and nine months ended September 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 nine months ended September 30, 2025.2025 and 2024 Transactions and Assets Held for Sale—In July 2025, the Company sold a vacant land parcel adjacent to its multifamily property at 1150 Clay Street in Oakland, California (“1150 Clay”). The Company received proceeds of $1.2 million, net of transaction costs of $89,000, and recorded a gain on the sale of $679,000 during the three and nine months ended September 30, 2025. In connection with