Creative Media & Community Trust CorpCMCT
Creative Media & Community Trust Corp Segments Disclosure
18. SEGMENT DISCLOSURE
The Company’s reportable segments during the years ended December 31, 2025 and 2024 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for the Company’s lending business. As previously disclosed, we completed the sale of our lending business on January 21, 2026, and, as a result, our lending business will cease to be one of our reportable segments in future periods. Management internally evaluates the operating performance and financial results of the segments based on net operating income. The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are
not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 2.
For the Company’s real estate segments, the Company defines net operating income (loss) as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision (benefit) for income taxes. For the Company’s lending segment, the Company defines net operating income as interest income net of interest expense and general overhead expenses.
The Company’s chief operating decision maker (“CODM”) is the Company’s executive management team, comprised of the Chief Executive Officer, Chief Investment Officer, Chief Financial Officer, and the 1st Vice President for portfolio oversight of CIM.
The CODM evaluates performance and allocates resources based on segment net operating income (loss). All expense categories on the statement of operations are significant and there are no other significant segment expenses that would require disclosure. The CODM uses net operating income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating underwriting standards, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing.
The net operating income (loss) of the Company’s segments for the years ended December 31, 2025 and 2024 is as follows:
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||
| Office (1), (2): | ||||||||||||||
| Revenues | $ | 50,140 | $ | 54,283 | ||||||||||
| Property expenses: | ||||||||||||||
| Operating | 25,213 | 26,608 | ||||||||||||
| General and administrative | 591 | 719 | ||||||||||||
| Total property expenses | 25,804 | 27,327 | ||||||||||||
Income (loss) from unconsolidated entities | (254) | 462 | ||||||||||||
| Segment net operating income—office | 24,082 | 27,418 | ||||||||||||
| Hotel: | ||||||||||||||
| Revenues | 41,341 | 39,407 | ||||||||||||
| Property expenses: | ||||||||||||||
| Operating | 29,491 | 27,807 | ||||||||||||
| General and administrative | 107 | 148 | ||||||||||||
| Total property expenses | 29,598 | 27,955 | ||||||||||||
| Segment net operating income—hotel | 11,743 | 11,452 | ||||||||||||
| Multifamily (1), (2): | ||||||||||||||
| Revenues | 15,783 | 19,515 | ||||||||||||
| Property expenses: | ||||||||||||||
| Operating | 12,339 | 13,547 | ||||||||||||
| General and administrative | 447 | 168 | ||||||||||||
| Total property expenses | 12,786 | 13,715 | ||||||||||||
(Loss) income from unconsolidated entities | (3,506) | (1,268) | ||||||||||||
| Segment net operating income—multifamily | (509) | 4,532 | ||||||||||||
| Lending: | ||||||||||||||
| Revenues | 8,960 | 10,756 | ||||||||||||
| Lending expenses: | ||||||||||||||
| Interest expense | 2,471 | 3,283 | ||||||||||||
| Expense reimbursements to related parties—lending segment | 2,591 | 2,571 | ||||||||||||
| General and administrative (3) | (224) | 1,702 | ||||||||||||
| Total lending expenses | 4,838 | 7,556 | ||||||||||||
| Segment net operating income—lending | 4,122 | 3,200 | ||||||||||||
| Total segment net operating income | $ | 39,438 | $ | 46,602 | ||||||||||
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its investment in the 4750 Wilshire JV to include income from the investment in the multifamily segment from its previous classification in the office segment. This change corresponded with the 4750 Wilshire JV’s substantial completion of the 4750 Wilshire Project. In the above table, the Company’s income earned from its investment in the 4750 Wilshire JV prior to October 1, 2024 is included within the office segment and its income earned from its investment in the 4750 Wilshire JV subsequent to October 1, 2024 is included within the multifamily segment. In addition, beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property in the multifamily segment, from its previous classification in the office segment. In the above table, activity
related to 4750 Wilshire Boulevard (Backlot) occurring prior to October 1, 2024 is included within the office segment and such activity subsequent to October 1, 2024 is included within the multifamily segment. In the above table, activity related to both the 1910 Sunset JV and 1015 N Mansfield JV are included within the office segment, while activity related to the 1902 Park JV is included in the multifamily segment.
(2)Beginning on October 1, 2025, in connection with the 1910 Sunset JV’s commencement of leasing at the 1915 Park Project, the Company began reporting its share of the income from the operations of the 1915 Park Project in its multifamily segment, while income from the operations of the 1910 Sunset Office Building continue to be reported in its office segment.
(3)Lending segment general and administrative expenses for the year ended December 31, 2025 included the reversal of the CECL balance of $2.6 million in connection with the reclassification of the loans receivable as held-for-sale as of December 31, 2025, in connection with the sale of First Western.
A reconciliation of the Company’s segment net operating income to net income attributable to the Company for the years ended December 31, 2025 and 2024 is as follows:
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||
| Total segment net operating income | $ | 39,438 | $ | 46,602 | ||||||||||
| Interest and other income | 445 | 551 | ||||||||||||
| Asset management and other fees to related parties | (1,356) | (1,797) | ||||||||||||
| Expense reimbursements to related parties—corporate | (3,496) | (2,281) | ||||||||||||
| Interest expense | (37,720) | (33,589) | ||||||||||||
| General and administrative | (4,434) | (4,267) | ||||||||||||
| Transaction-related costs | (1,475) | (1,382) | ||||||||||||
| Depreciation and amortization | (27,081) | (27,373) | ||||||||||||
| Loss on early extinguishment of debt | (88) | (1,416) | ||||||||||||
| Impairment of real estate | (3,692) | — | ||||||||||||
Loss on assets held for sale | (298) | — | ||||||||||||
| Gain on sale of real estate | 679 | — | ||||||||||||
Loss before provision for income taxes | (39,078) | (24,952) | ||||||||||||
| Provision for income taxes | (497) | (798) | ||||||||||||
Net loss | (39,575) | (25,750) | ||||||||||||
Net loss attributable to noncontrolling interests | 573 | 575 | ||||||||||||
Net loss attributable to the Company | $ | (39,002) | $ | (25,175) | ||||||||||
The condensed assets for each of the segments as of December 31, 2025 and 2024 are as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| (in thousands) | |||||||||||
| Condensed assets: | |||||||||||
| Office (1) | $ | 402,151 | $ | 421,438 | |||||||
| Hotel | 114,994 | 108,963 | |||||||||
| Multifamily (1) | 270,645 | 279,308 | |||||||||
| Lending (2) | 67,867 | 71,192 | |||||||||
Non-segment assets | 3,530 | 8,654 | |||||||||
| Total assets | $ | 859,187 | $ | 889,555 | |||||||
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property in the multifamily segment, from its previous classification in the office segment. In the above table, the assets related to 4750 Wilshire Boulevard (Backlot) as of December 31, 2025 and 2024 are included in with Multifamily.
(2)As of December 31, 2025, the Company had reclassified $65.9 million of lending segment assets as held-for-sale, in connection with the sale of First Western.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.