Creative Media & Community Trust CorpCMCT
Creative Media & Community Trust Corp Debt Disclosure
7. DEBT
The following table summarizes the debt balances as of December 31, 2025 and 2024, and the debt activity for the year ended December 31, 2025 (in thousands):
| During the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| Balances as of December 31, 2024 | Debt Issuances & Assumptions | Repayments (1) | Accretion & (Amortization) | Reclassified to Held for Sale | Balances as of December 31, 2025 | |||||||||||||||||||||||||||||||||
| Mortgages Payable: | ||||||||||||||||||||||||||||||||||||||
| Fixed rate mortgages payable | $ | 269,100 | $ | — | $ | (697) | $ | — | $ | — | $ | 268,403 | ||||||||||||||||||||||||||
| Variable rate mortgages payable | 171,346 | 43,609 | (6,399) | — | — | 208,556 | ||||||||||||||||||||||||||||||||
| 440,446 | 43,609 | (7,096) | — | — | 476,959 | |||||||||||||||||||||||||||||||||
| Deferred debt issuance costs — Mortgages Payable | (3,995) | (1,971) | — | 2,446 | — | (3,520) | ||||||||||||||||||||||||||||||||
| Total Mortgages Payable | 436,451 | 41,638 | (7,096) | 2,446 | — | 473,439 | ||||||||||||||||||||||||||||||||
| Secured Borrowings – Government Guaranteed Loans: | ||||||||||||||||||||||||||||||||||||||
| Outstanding Balance | 1,361 | — | (52) | — | (1,309) | — | ||||||||||||||||||||||||||||||||
| Unamortized premiums | 22 | — | — | (3) | (19) | — | ||||||||||||||||||||||||||||||||
| Total Secured Borrowings—Government Guaranteed Loans | 1,383 | — | (52) | (3) | (1,328) | — | ||||||||||||||||||||||||||||||||
| Other Debt: | ||||||||||||||||||||||||||||||||||||||
| Lending division credit facility | — | 11,895 | (1,446) | — | — | 10,449 | ||||||||||||||||||||||||||||||||
| 2022 credit facility revolver | 1,367 | — | (1,367) | — | — | — | ||||||||||||||||||||||||||||||||
| 2022 credit facility term loan | 13,633 | — | (13,633) | — | — | — | ||||||||||||||||||||||||||||||||
| Junior subordinated notes | 27,070 | — | — | — | — | 27,070 | ||||||||||||||||||||||||||||||||
| SBA 7(a) loan-backed notes | 27,857 | — | (11,453) | — | (16,404) | — | ||||||||||||||||||||||||||||||||
| Deferred debt issuance costs — other | (733) | — | 59 | 272 | 402 | — | ||||||||||||||||||||||||||||||||
| Discount on junior subordinated notes | (1,296) | — | — | 106 | — | (1,190) | ||||||||||||||||||||||||||||||||
| Total Other Debt | 67,898 | 11,895 | (27,840) | 378 | (16,002) | 36,329 | ||||||||||||||||||||||||||||||||
| Total Debt, Net | $ | 505,732 | $ | 53,533 | $ | (34,988) | $ | 2,821 | $ | (17,330) | $ | 509,768 | ||||||||||||||||||||||||||
(1)The write-off of $59,000 of deferred debt issuance costs associated with the 2022 Credit Facility Term Loan (as defined below) resulting from the early extinguishment of debt incurred during the year ended December 31, 2025 is reflected here within deferred debt issuance costs — other. See further discussion under 2022 Credit Facility.
Fixed Rate Mortgages Payable—The Company’s fixed rate mortgages payable are non-recourse and are secured by, among other things, first priority deeds of trust, security agreements or other similar security instruments on the fee simple interests in properties underlying such mortgages and assignments of rents receivable. As of December 31, 2025, the Company’s fixed rate mortgages payable had fixed interest rates of 6.25%, 4.14% and 7.41% per annum, with payments of interest only and initial maturity dates of June 7, 2026, July 1, 2026 and January 11, 2030, respectively.
In regards to the mortgage payable with a balance of $66.3 million as of December 31, 2025 maturing on June 7, 2026 (the “1150 Clay Mortgage”), the Company executed the final one-year extension option under the mortgage in June 2025. The Company intends to work with the lender in order to refinance the 1150 Clay Mortgage beyond its stated maturity date of June 7, 2026. Although the Company believes it is likely it will be able to refinance the 1150 Clay Mortgage prior to June 7, 2026, there can be no assurance that such refinancing will occur. If the Company and the lender under the 1150 Clay Mortgage cannot agree on an extension of the mortgage and the Company fails to repay the loan in full upon its contractual maturity date, such failure would constitute an event of default under the mortgage and would allow the lender to, among other remedies, take possession of the property.
In regards to the mortgage payable with a balance of $97.1 million as of December 31, 2025 maturing on July 1, 2026 (the “1 Kaiser Mortgage”), the Company intends to work with the lender in order to refinance the 1 Kaiser Mortgage beyond its stated maturity date of July 1, 2026. Although the Company believes it is likely it will be able to refinance the 1 Kaiser Mortgage prior to July 1, 2026, there can be no assurance that such refinancing will occur. If the Company and the lender under the 1 Kaiser Mortgage cannot agree on an extension of the mortgage and the Company fails to repay the loan in full upon its
contractual maturity date, such failure would constitute an event of default under the mortgage and would allow the lender to, among other remedies, take possession of the property.
Variable Rate Mortgages Payable—The Company’s variable rate mortgages payable are non-recourse and are secured by, among other things, first priority deeds of trust, security agreements or other similar security instruments on the Company’s fee simple and leasehold interests in its hotel asset and adjacent parking garage and by a deed of trust on and assignment of rents receivable from a multifamily property. As of December 31, 2025, the Company’s variable rate mortgages payable had a variable interest rate of SOFR plus 4.35%, SOFR plus 3.36%, SOFR plus 3.00% and SOFR plus 2.95%, with a maturity date of January 1, 2027 (with three one-year extension options), January 31, 2027, February 14, 2027 and April 3, 2028, respectively. The mortgages with maturity dates of January 1, 2027, January 31, 2027, and February 14, 2027 have monthly payments of interest only, while the mortgage with an initial maturity date of April 3, 2028 has monthly payments of interest plus $50,000 of principal.
With regards to the mortgage payable with a balance of $81.0 million as of December 31, 2025 secured by a multifamily property in Oakland, California (the “Channel House Mortgage”), on August 4, 2025 the Company reached an agreement with the lender to extend the maturity date through January 31, 2027 (the “Channel House Mortgage Extension”). In connection with the Channel House Mortgage Extension, the Company made a repayment of $6.0 million under the Channel House Mortgage, reducing it from its previous balance of $87.0 million. Although the Company believes it is likely it will be able to refinance the Channel House Mortgage prior to January 31, 2027, there can be no assurance that such refinancing will occur. If the Company and the lender under the Channel House Mortgage cannot agree on an extension of the mortgage and the Company fails to repay the loan in full upon its contractual maturity date, such failure would constitute an event of default under the mortgage and would allow the lender to, among other remedies, take possession of the property.
Secured Borrowings—Government Guaranteed Loans—Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full. As of December 31, 2025, the Company’s secured borrowings-government guaranteed loans included $337,000 of loans sold for a premium and excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 7.96% at December 31, 2025, and $1.0 million of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.60% at December 31, 2025. Secured borrowings—government guaranteed loans were reclassified as held for sale as of December 31, 2025, and were included in the sale of First Western, which closed in January 2026.
Lending Division Revolving Credit Facility—In June 2025, a subsidiary of the Company, as borrower, entered into an agreement (the “Lending Division Revolving Credit Facility”) with a bank that included a $20.0 million revolving credit facility secured by the unguaranteed portion of certain of such subsidiary’s SBA 7(a) loans receivable and other assets of such subsidiary, subject to a borrowing base calculation, and fully guaranteed by the Company. The Lending Division Revolving Credit Facility bore interest at (i) the base rate plus 2.00% or (ii) SOFR plus 3.00%, at the borrower’s election and, as of December 31, 2025, had an effective interest rate of 6.79%. In connection with the Company’s guaranty of the Lending Division Revolving Credit Facility (the “Parent Guaranty”), the Company is subject to certain financial covenants, including maintenance of (i) a consolidated fixed charge coverage ratio of at least 1.05 to 1.00, (ii) a minimum net worth of $200.0 million, (iii) a total leverage ratio no greater than 2.50 to 1.00 and (iv) $10.0 million of liquidity. If the Company fails to comply with the financial covenants set forth in the Parent Guaranty, the lender under the Lending Division Revolving Credit Facility has the right to require the Company to post cash collateral for the benefit of the lender in an amount equal to 105% of the outstanding principal balance under the facility plus all accrued and unpaid interest under such facility. On October 22, 2025, the Company entered into an amendment to the Parent Guaranty to modify the Parent Guaranty’s consolidated fixed charge coverage ratio covenant. Pursuant to the amendment, the Company must maintain a consolidated fixed charge coverage ratio of (x) for the fiscal quarters ending September 30, 2025 and December 31, 2025, not less than 1.00 to 1.00, and (y) for any fiscal quarter ending after December 31, 2025, not less than 1.15 to 1.00. As previously announced on November 12, 2025, the Company and First Western entered into the Membership Interest Purchase Agreement with the Buyer. The Closing contemplated by the Membership Interest Purchase Agreement occurred on January 21, 2026. At the Closing, Buyer purchased from the Company all of the issued and outstanding equity interests of First Western SBLC, LLC, and the remaining balance of $10.5 million under the Lending Division Revolving Credit Facility was paid in full, resulting in the termination of the Lending Division Revolving Credit Facility.
2022 Credit Facility—In December 2022, the Company refinanced its 2018 credit facility and replaced it with a new 2022 credit facility (the “2022 Credit Facility”), entered into with a bank syndicate, that included a $56.2 million term loan (the “2022 Credit Facility Term Loan”) as well as a revolver that originally allowed the Company to borrow up to $150.0 million (the “2022 Credit Facility Revolver”), both of which were collectively subject to a borrowing base calculation. At the time the 2022 Credit Facility was entered into, it was collateralized by six of the Company’s office properties, as well as the Company’s hotel property and adjacent parking garage (the “Hotel Properties”). The 2022 Credit Facility originally had a maturity date in December 2025 and provided for two one-year extension options. In December 2024, using proceeds from the closing of a variable rate mortgage on the Hotel Properties and a fixed rate mortgage on three of the Company’s office properties, the Company repaid $111.7 million on the 2022 Credit Facility Revolver and $42.6 million on the 2022 Credit Facility Term Loan. On April 3, 2025, the Company completed the refinancing of an office property in Austin, Texas and used a portion of the proceeds from such refinancing to repay the 2022 Credit Facility in full and, in connection with such repayment, the 2022 Credit Facility was terminated. In connection with termination of the 2022 Credit Facility, the Company recorded a loss on early extinguishment of debt during the year ended December 31, 2025 of $88,000 related to the write-off of deferred debt origination costs of $29,000 associated with the 2022 Credit Facility Revolver and $59,000 associated with the 2022 Credit Facility Term Loan.
Junior Subordinated Notes—The Company has junior subordinated notes with a variable interest rate which resets quarterly based on the three-month SOFR plus 3.51%, with quarterly interest only payments. The junior subordinated balance is due at maturity on March 30, 2035. The junior subordinated notes may be redeemed at par at the Company’s option.
SBA 7(a) Loan-Backed Notes—On March 9, 2023, the Company completed a securitization of the unguaranteed portion of certain of its SBA 7(a) loans receivable with the issuance of $54.1 million of unguaranteed SBA 7(a) loan-backed notes (the “SBA 7(a) Loan-Backed Notes”). The SBA 7(a) Loan-Backed Notes were collateralized by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of the Company’s SBA 7(a) loans receivable. The SBA 7(a) Loan-Backed Notes were reclassified as held for sale as of December 31, 2025, and were included in the sale of First Western, which closed in January 2026.
Other—Deferred debt issuance costs, which represent legal and third-party fees incurred in connection with the Company’s borrowing activities, are capitalized and amortized to interest expense on a straight-line or effective interest method over the life of the related loan. Deferred debt issuance costs are presented net of accumulated amortization and are a reduction to total debt.
As of December 31, 2025 and December 31, 2024, accrued interest and unused commitment fees payable of $1.8 million and $1.1 million, respectively, are included in accounts payable and accrued expenses.
Future principal payments on the Company’s debt (face value) as of December 31, 2025 are as follows:
| Years Ending December 31, | Mortgages Payable (1) | Lending Division Revolving Credit Facility(2) | Junior Subordinated Notes | Total | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| 2026 | $ | 164,004 | $ | — | $ | — | $ | 164,004 | ||||||||||||||||||
| 2027 | 177,555 | 10,449 | — | 188,004 | ||||||||||||||||||||||
| 2028 | 30,400 | — | — | 30,400 | ||||||||||||||||||||||
| 2029 | — | — | — | — | ||||||||||||||||||||||
| 2030 | 105,000 | — | — | 105,000 | ||||||||||||||||||||||
| Thereafter | — | — | 27,070 | 27,070 | ||||||||||||||||||||||
| $ | 476,959 | $ | 10,449 | $ | 27,070 | $ | 514,478 | |||||||||||||||||||
(1)In regards to the $66.3 million 1150 Clay Mortgage, which matures on June 7, 2026, see the discussion under Fixed Rate Mortgages Payable. In regards to the $97.1 million 1 Kaiser Mortgage, which matures on July 1, 2026, see the discussion under Fixed Rate Mortgages Payable. In regards to the $81.0 million Channel House Mortgage, which matures on January 31, 2027, see the discussion under Variable Rate Mortgages Payable.
(2)The Lending Division Revolving Credit Facility was repaid in full and terminated in January 2026.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 12, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 15, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.