Financial Analysis

15. COMMITMENTS AND CONTINGENCIES Loan Commitments Commitments to extend credit are agreements to lend to a customer when the terms established in the contract are met. The Companys outstanding commitments to fund loans were $16.5 million as of September 30, 2025, all of which are for prime-based loans to be originated by the Companys subsidiary engaged in SBA 7(a) Small Business Loan Program lending, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. General In connection with the ownership and operation of real estate properties, the Company has certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals. The Company had a total of $6.0 million in future obligations under leases to fund tenant improvement as of September 30, 2025. As of September 30, 2025, $13.5 million was funded to reserve accounts included in restricted cash on the Companys consolidated balance sheet for these tenant improvement obligations in connection with various mortgage loan agreements. Under the terms of the Sheraton Management Agreement, the Company is obligated to complete specific renovation projects at its hotel property (the Sheraton Renovations). As of September 30, 2025, the expected costs to complete t …

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7. DEBT The following table summarizes the debt balances as of September 30, 2025 and December 31, 2024 and the debt activity for the nine months ended September 30, 2025 (in thousands): During the Nine Months Ended September 30, 2025 Balances as of December 31, 2024 Debt Issuances & Assumptions Repayments (1) Accretion & (Amortization) Balances as of September 30, 2025 Mortgages Payable: Fixed rate mortgages payable $ 269,100 $ $ (697) $ $ 268,403 Variable rate mortgages payable 171,346 42,285 (6,250) 207,381 440,446 42,285 (6,947) 475,784 Deferred debt origination costs Mortgages Payable (3,995) (2,326) 1,885 (4,436) Total Mortgages Payable 436,451 39,959 (6,947) 1,885 471,348 Secured Borrowings Government Guaranteed Loans: Outstanding Balance 1,361 (38) 1,323 Unamortized premiums 22 (2) 20 Total Secured Borrowings Government Guaranteed Loans 1,383 (38) (2) 1,343 Other Debt: Lending division revolving credit facility 9,250 9,250 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 (7,429) 20,428 Deferred debt origination costs other (733) 59 218 (456) Discount on junior subordinated notes (1,296) 80 (1,216) Total Other Debt 67,898 9,250 (22,370) 298 55,076 Total Debt, Net $ 505,732 $ 49,209 $ (29,355) $ 2,181 $ 527,767 (1) The write-off of $59,000 of deferred debt issuance costs associated with the 2022 Credit Facility Term Loan (as defined below) resultin …

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Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 17 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Hotel properties Hotel income $ 7,243 $ 6,808 $ 30,550 $ 29,768 Rental and other property income 335 221 1,296 1,056 Interest and other income 12 113 60 327 Hotel revenues $ 7,590 $ 7,142 $ 31,906 $ 31,151

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9. STOCK-BASED COMPENSATION PLANS On April 3, 2015, the Companys board of directors (the Board of Directors) unanimously approved the Companys Equity Incentive Plan (the Equity Incentive Plan), which was approved by the Companys stockholders. On June 27, 2023, the Equity Incentive Plan was amended by the Board of Directors, and subsequently approved by the Companys stockholders, to authorize additional shares of Common Stock for issuance as compensation . The Company has granted awards of restricted shares of Common Stock to each of the independent members of the Board of Directors under the Equity Incentive Plan as follows: Grant Date (1) Vesting Date Restricted Shares of Common Stock - Individual Restricted Shares of Common Stock - Aggregate August 2024 August 2025 107 428 August 2025 August 2026 8,661 34,644 ______________________ (1) Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period and generally vests based on one year of continuous service. The Company recorded compensation expense related to these restricted shares of Common Stock in the amount of $55,000 for both the three months ended September 30, 2025 and 2024, and $165,000 for both the nine months ended September 30, 2025 and 2024. As of September 30, 2025, there was $183,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized ratably over the remaining vesting period. …

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13. FAIR VALUE MEASUREMENTS The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities Level 2 Inputs Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs Unobservable inputs In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Managements estimation of the fair value of the Companys financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active …

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Recently Issued Accounting Pronouncements In August 2023, the FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement (ASU 2023-05). ASU 2023-05 applies to the formation of a joint venture and requires a joint venture to initially measure all contributions received upon its formation at fair value. The guidance is intended to reduce diversity in practice and provide users of joint venture financial statements with more decision-useful information. The amendments are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. The adoption of ASU 2023-05 did not impact the Companys financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis. ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. The adoption of ASU No. 2023-07 has not impacted the Companys financial statements but has resulted in incremental disclosures, which are included within Note 17 Segment Disclosure. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, (ASU 2023-09 …

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14. RELATED-PARTY TRANSACTIONS Asset Management and Other Fees to Related Parties Asset Management Fees; Administrative Fees and Expenses CIM Urban Partners, L.P., a wholly-owned subsidiary of the Company, and CIM Capital, LLC, an affiliate of CIM Group (CIM Capital), have an investment management agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the Investment Management Agreement). CIM Capital has assigned its duties under the Investment Management Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The Operator refers to CIM Capital and its four wholly-owned subsidiaries. The Company and its subsidiaries have a master services agreement (the Master Services Agreement) with CIM Service Provider, LLC (the Administrator), an affiliate of CIM Group, pursuant to which the Administrator provides, or arranges for other service providers to provide, management and administration services to the Company and its subsidiaries. On January 5, 2022, the Company and certain of its subsidiaries entered into a Fee Waiver (the Fee Waiver) with the Operator and the Administrator with respect to fees that are payable to them. The Fee Waiver is effective retroactively to January 1, 2022 …

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17. SEGMENT DISCLOSURE The Companys reportable segments during the three and nine months ended September 30, 2025 and 2024 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for the Companys lending business. 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 the notes to the Companys audited consolidated financial statements for the year ended December 31, 2024 included in the Companys Annual Report on Form 10-K for the year ended December 31, 2024. For the Companys 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 Companys lending segment, the Company defines net operating income as interest income net of inter …

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12. STOCKHOLDERS EQUITY Dividends Holders of the Companys Common Stock are entitled to receive dividends, if, as and when authorized by the Board of Directors and declared by the Company out of legally available funds. In determining the Companys dividend policy, the Board of Directors considers many factors including the amount of cash resources available for dividend distributions, capital spending plans, cash flow, the Companys financial position, applicable requirements of the MGCL, any applicable contractual restrictions, and future growth in NAV and cash flow per share prospects. Consequently, the dividend rate on a quarterly basis does not necessarily correlate directly to any individual factor. Cash dividends per share of Common Stock paid in respect of the nine months ended September 30, 2024 consisted of the following (no cash dividends were declared for the nine months ended September 30, 2025): Declaration Date Payment Date Type Cash Dividend Per Share of Common Stock September 16, 2024 October 8, 2024 Regular Quarterly (a.) June 25, 2024 July 22, 2024 Regular Quarterly $ 21.25 March 27, 2024 April 8, 2024 Regular Quarterly $ 21.25 _____________________ a. The Companys Board of Directors declared a stock dividend of $10.00 (or 5.05 shares of Common Stock, as determined on a reverse split-adjusted basis) per share of Common Stock, payable in shares of Common Stock, using a price of $496.25 per share, resulting in the issuance of 6,739 shares of Common Stock. The st …

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18. SUBSEQUENT EVENTS On November 6, 2025, the Company and First Western SBLC, Inc., a Florida corporation and an indirect wholly owned subsidiary of the Company (First Western) and which represents the Companys lending business which originates loans under the SBA 7(a) Program, entered into a membership interest purchase agreement (the Membership Interest Purchase Agreement), with PG FR Holding, LLC, a Delaware limited liability company (the Buyer). Pursuant to the Membership Interest Purchase Agreement, and upon the terms and subject to the conditions therein, Buyer will purchase from the Company all of the issued and outstanding equity interests of First Western (the Transactions). The Company estimates that, pursuant to the Membership Interest Purchase Agreement and based on information related to First Westerns assets and other matters as of September 30, 2025, the purchase price will be 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 (the Closing) of the Transactions. Upon the Closing and giving effect to the payment of other debt, transaction expenses and other matters, the Transactions are expected to yield net cash proceeds to the Company of approximately $31 million. The Closing is subject to the receipt of the SBAs consent to the acquisition by the Buyer of the equity interests in First Western and certain customary closing conditions, including (i) …

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