UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One):

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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File Number 1-13610

CIM COMMERCIAL TRUST CORPORATION

(Exact name of registrant as specified in its charter)

Maryland

(State or Other Jurisdiction of Incorporation or Organization)

17950 Preston Road, Suite 600, Dallas, Texas

(Address of Principal Executive Offices)

75-6446078 (I.R.S. Employer Identification No.) 75252

(Zip Code)

(972) 349-3200

(Registrant's telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Common Stock, $0.001 Par Value	CMCT	Nasdaq Global Market
Common Stock, $0.001 Par Value	CMCT-L	Tel Aviv Stock Exchange
Series L Preferred Stock, $0.001 Par Value	CMCTP	Nasdaq Global Market
Series L Preferred Stock, $0.001 Par Value	CMCTP	Tel Aviv Stock Exchange
(Title of each class)	(Trading symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ሬ □ Νο Ο

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ሬ No □

Indicate by check mark whether the Registrant is a large accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer	Non-accelerated filer
Smaller reporting company	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □ No Ø

As of August 2, 2021, the Registrant had outstanding 23,369,331 shares of common stock, par value $0.001 per share.

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PART I Financial Information Item 1. Financial Statements CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited)

		June 30, 2021		December 31, 2020
A SSIBTS
Investments in real estate, net	ಕ್ಕಾ	498,521	ਦਿੱਤੇ	506,040
Cash and cash equivalents		59,730		33,636
Restricted cash		9,804		10,013
Loans receivable, net		81.942		83,135
Accounts receivable, net		1,795		1,737
Deferred rent receivable and charges, net		36,339		35,956
Other intangible assets, net		5,754		6,313
Loan servicing asset, net and other assets		10,939		8,787
TOTAL ASSETS	ക്ക	704,824	ਦਿੱਤੇ	685,617
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY
LIABILITIES:
Debt, net	S	260,717	S	324,313
Accounts payable and accrued expenses		13,678		20,327
Intangible liabilities, net		388		587
Due to related parties		10,632		6,706
Other liabilities		12,413		9,733
Total liabilities		297,828		361,666
COMMITMENTS AND CONTINGENCIES (Note 13)
REDEEMABLE PREFERED STOCK: Series A cumulative redeemable preferred stock,$0.001 par value; 36,000,000 shares authorized; 1,845,681 and 1,844,881 shares issued andoutstanding, respectively, as of June 30, 2021 and 2,008,256 and 2,007,856 shares issuedand outstanding, respectively, as of December 31, 2020; Inquidation preference of $25.00 pershare, subject to adjustment		42,470		45,837
EQUITY:
Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 sharesauthorized; 5,408,954 and 5,253,377 shares issued and outstanding, respectively, as of June30, 2021 and 4,484,376 and 4,377,762 shares issued and outstanding, respectively, as ofDecember 31, 2020; liquidation preference of $25.00 per share, subject to adjustment		130,595		108,729
Series D cumulative redeemable preferred stock, $0.001 par value; 32,000,000 sharesauthorized; 31,025 shares issued and outstanding as of June 30, 2021 and 19,145 sharesissued and outstanding as of December 31, 2020; liquidation preference of $25.00 pershare, subject to adjustment		764		473
Series L cumulative redeemable preferred stock, $0.001 par value; 9,000,000 sharesauthorized; 8,080,740 and 5,387,160 shares issued and outstanding, respectively, as of June30, 2021 and December 31, 2020; liquidation preference of $28.37 per share, subject toadjustment		152,834		152,834
Common stock, $0.001 par value; 900,000,000 shares authorized; 23,369,331 shares issuedand outstanding as of June 30, 2021 and 14,827,410 shares issued and outstanding as ofDecember 31, 2020.		24		ો ર
Additional paid-in capital		868,929		794,127
Distributions in excess of earnings		(788,957)		(778,519)
Total stockholders' equity		364,189		277,659
Noncontrolling interests		337		455
Total equity		364,526		278,114
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY	S	704,824	S	685,617

The accompanying notes are an integral part of these consolidated financial statements.

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2021	2020	2021	2020
REVENUES:
Rental and other property income	$ 13,309	$ 13,700	$ 26,658	$ 28,519
Hotel income	3,130	869	4,862	8,628
Interest and other income	6,234	1,941	10,032	4,898
Total Revenues	22,673	16,510	41,552	42,045
EXPENSES:
Rental and other property operating	9,115	7,492	17,405	20,007
Asset management and other fees to related parties	2,260	2,376	4,519	5,021
Expense reimbursements to related parties-corporate	454	615	1,059	1,427
Expense reimbursements to related parties-lending segment	433	998	1,164	1,680
Interest	2,673	2,896	5,305	6,063
General and administrative	1,146	1,668	3,768	3,402
Depreciation and amortization	5,069	5,197	10,106	10,455
	21,150	21,242	43,326	48,055
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES	1,523	(4,732)	(1,774)	(6,010)
Provision (benefit) for income taxes	996	(691)	1,370	(713)
NET INCOME (LOSS)	527	(4,041)	(3,144)	(5,297)
Net loss (income) attributable to noncontrolling interests	3	(2)	ব	(6)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	530	(4,043)	(3,140)	(5,303)
Redeemable preferred stock dividends declared or accumulated (Note 9)	(4,621)	(3,990)	(9,087)	(9,346)
Redeemable preferred stock deemed dividends (Note 9)	(106)	(52)	(163)	(213)
Redeemable preferred stock redemptions (Note 9)	(13)	(56)	(26)	(66)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (4,210)	(8,141)A	$(12,416)	$(14,928)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS PERSHARE:
Basic	સ્ત્ર(0.28)	(0.55)ಲ್ಲಿ	(0.83)ಲ್ಲಿ ಕ	ਦਿੱਤਾ। ਉ(1.02)
Diluted	S(0.28)	સ્ત્ર(0.55)	(0.83)ર્સ્ડ	ക്ക(1.02)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
Basic	15,102	14,782	14,956	14,690
Diluted	15,102	14,782	14,956	14,690

The accompanying notes are an integral part of these consolidated financial statements.

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Equity

(In thousands, except share and per share amounts) (Unaudited)

	Six Months Ended June 30, 2021
	Common Stock		Preferred Stock
	Shares	ParValue	Shares	ParValue	AdditionalPaid-inCapital	Distributionsin Excess ofEarnings	TotalStockholders'Equity	Non-controllingInterests	TotalEquity
Balances, December 31, 2020	14,827,410	15A	9,784,067	$ 262,036	$ 794,127	A(178,519)	277,659A	న్న455	$ 278,114
Contributions to noncontrolling interests
Distributions to noncontrolling interests								(114)	(114)
Stock-based compensation expense					60		60		60
Common dividends ($0.075 per share)						(1,112)	(1,112)		(1,112)
Dividends to holders of Series APreferred Stock ($0.34375 per share)						(2,350)	(2,350)		(2,350)
Issuance of Series D Preferred Stock			4,045	99	(3)		96		96
Dividends to holders of Series DPreferred Stock ($0.35313 per share)						(9)	(9)		(9)
Reclassification of Series A PreferredStock to permanent equity			366,991	9,144	(901)		8,243		8,243
Redeemable Preferred Stock deemeddividends						(27)	(57)		(57)
Redemption of Series A Preferred Stock			(29,462)	(733)	61	(13)	(685)		(685)
Net loss						(3,670)	(3,670)	(1)	(3,671)
Balances, March 31, 2021	14,827,410	ಕાર	10,125,641	$ 270,546	ನಿ793,344	ಕ್ಕೆ(785,730)	278,1752	340ಕೊ	278,515A
Stock-based compensation expense	20,332				રે0		રે0		રે0
Common dividends ($0.075 per share)						(1,114)	(1,114)		(1,114)
Dividends to holders of Series APreferred Stock ($0.34375 per share)						(2,511)	(2,511)		(2,511)
Issuance of Series D Preferred Stock			7,835	192	(7)		185		185
Dividends to holders of Series DPreferred Stock ($0.35313 per share)						(13)	(13)		(13)
Reclassification of Series A PreferredStock to permanent equity			556,587	13,915	(1,434)		12,481		12,481
Redeemable Preferred Stock deemeddividends						(106)	(106)		(106)
Redemption of Series A Preferred Stock			(18,501)	(460)	42	(13)	(431)		(431)
Issuance of Common Stock	8,521,589	9			76,934		76,943		76,943
Net (loss) income						530	530	(3)	527
Balances, June 30, 2021	23,369,331	ಕ24	10,671,562	$ 284,193	868,929A	(788,957)ಕೆ	ર્સ્વ364,189	337న్	ಕೆ.364,526

(Continued)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Equity (Continued)

(In thousands, except share and per share amounts) (Unaudited) Six Months Ended June 30, 2020

	Common StockPreferred Stock
	Shares	ParValue	Shares	ParValue	AdditionalPaid-inCapital	Distributionsin Excess ofEarnings	TotalStockholders'Equity	Non-controllingInterests	TotalEquity
Balances, December 31, 2019	14,602,149	ારA	8,224,254	$223,467	794,825A	(740,617)A	277,690ಕೆ	ಕરે(રેસ્તર) રહ્યારે તે તે તે તે તે તે તે તે તે તે તે આ રાજ્યના તાલુકામાં આવેલું એ તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં છે. આ ગામનાં છે. આ ગામનાં છે. આ ગામના	278,195A
Stock-based compensation expense					56		56		56
Common dividends ($0.075 per share)						(1,095)	(1,095)		(1,095)
Issuance of Series A Preferred Warrants					28		28		28
Dividends to holders of Series APreferred Stock ($0.68750 per share)						(3,252)	(3,252)		(3,252)
Issuance of Series D Preferred Stock			5,980	1 20	(5)		145		145
Dividends to holders of Series DPreferred Stock ($0.588542 per share)						(3)	(3)		(3)
Reclassification of Series A PreferredStock to permanent equity			304,274	7,588	(640)		6,948		6,948
Redeemable Preferred Stock deemeddividends						(161)	(161)		(161)
Redemption of Series A Preferred Stock			(2,452)	(61)	5	(10)	(66)		(66)
Net (loss) income						(1,260)	(1,260)	4	(1,256)
Balances, March 31, 2020	14,602,149	] રેಿ	8,532,056	231,144	794,269A	ਸਿ(746,398)	279,030	509ಕ್ಕೆ	279,539A
Distributions to noncontrolling interests								(45)	(45)
Stock-based compensation expense	21,912				ર્સ્વ		રે રે		ર્સ્
Issuance of shares of Common Stock inexchange for asset management fees	203,349				2,359		2,359		2,359
Common dividends ($0.075 per share)						(1,112)	(1,112)		(1,112)
Issuance of Series D Preferred Stock			920	23	(1)		22		22
Dividends to holders of Series DPreferred Stock ($0.35313 per share)						(3)	(3)		(3)
Dividends to holders of Series APreferred Stock ($0.34375 per share)						(1,886)	(1,886)		(1,886)
Reclassification of Series A PreferredStock to permanent equity			427,064	10,638	(899)		9,739		9,739
Redeemable Preferred Stock deemeddividends						(52)	(52)		(52)
Redemption of Series A Preferred Stock			(5,532)	(138)	11	(56)	(183)		(183)
Net (loss) income						(4,043)	(4,043)	2	(4,041)
Balances. June 30. 2020	14.827.410	ક।	8.954.508	241.667	795.795	ಕ(753 550)	283 927	ರ್ಕ466	284 393ಕೆ

The accompanying notes are an integral part of these consolidated financial statements.

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Continued) (In thousands) (Unaudited)

	Six Months EndedJune 30,
		2021		2020
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		25,885		50,205
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period		43.649		35.947
End of period	S	69,534	ದಿ	86,152
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THECONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	S	59,730	S	75,192
Restricted cash		9,804		10,960
Total cash and cash equivalents and restricted cash	ಕಾ	69,534	S	86,152
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	ಲ್ಲಿ ಮಾ	4.582	S	5,567
Federal income taxes paid	S	425	S	100
SUPPLEMENTAL DISCLOSURES OF NONCASHING AND FINANCING ACTIVITES:
Accrued capital expenditures, tenant improvements and real estate developments	S	390	S	3,761
Accrued preferred stock offering costs	ನಿ	984	S	616
Accrual of dividends payable to preferred stockholders	S	3.260	S	2,428
Preferred stock offering costs offset against redeemable preferred stock	S	250	S	305
Reclassification of Series A Preferred Stock from temporary equity to permanent equity	ക്ക	20,724	S	16,687
Accrued deferred costs	ಲ್ಲಿ ನಿರ್ವಾರಿ ಮಾಡಿ ಮಾಡಿದ್ದಾರೆ. ನಿರ್ಮಿಸಿದ ಮುಂದಿಗಳು ಮಾಡಿ ಮಾಡಿದ್ದಾರೆ. ನಿರ್ಮಿಸಿದ ಮುದ್ರಿ ಮಾಡಿಗೂ ಸಾಮಿಕಾರಿ ಮಾಡಿ ಮಾಡಿದ್ದಾರೆ. ಮುಂದಿಗಳು ಮುಂದಿಗಳು ಮಾಡಿಗೂ ಮುಂದಿಗಳು ಮಾಡಿಗೂ ಮುಂದಿಗಳು ಮಾಡಿಗೂ		સ્ત્રિ	457
Reclassification of loans receivable, net to real estate owned	S		S	174
Redeemable preferred stock deemed dividends	ತಿ	163	S	213
Accrued redeemable preferred stock fees	S	640	S	249
Equity-based payment for management fees	ಲ್ಲಿ ಮಾ	2,419	S	2,359
Accrued Common Stock offering costs included in additional paid-in capital	S	1.557	S

The accompanying notes are an integral part of these consolidated financial statements.

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited)

1. ORGANIZATION AND OPERATIONS

CIM Commercial Trust Corporation ("CIM Commercial" or the "Company"), a Maryland corporation and real estate investment trust ("REIT"), together with its wholly-owned subsidiaries, primarily owns and operates Class A and creative office real assets in vibrant and improving metropolitan communities throughout the United States. The Company, supported by the broad real estate capabilities of CIM Group'), seeks to focus on the acquisition, ownership, operation and development of cash flowing creative office, multifamily, retail, parking, infill industrial and limited service hospitality real assets in communities qualified by CIM Group. These communities are located in areas that include traditional downtown areas and suburban main streets, which barriers to entry, high population density, positive population trends and a propensity for growth. The Company was originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust.

On July 8, 2013, PMC Commercial entered into a merger agreement with CIM Urban REIT, LLC ("CIM REIT"), an affiliate of CIM Group, and subsidiaries of the respective parties. CIM REIT was a private commercial REIT and was the owner of CIM Urban Partners, L.P. (*CIM Urban'). The merger was completed on March 11, 2014 (the "Acquisition Date").

The Company's common stock, $0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq") under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE") under the ticker symbol "CMCT-L." The Company's Series L preferred stock, $0.001 par value per share ("Series L Preferred Stock"), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol "CMCTP." The Company has authorized for issuance 900,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock").

The Company filed Articles of Amendment (the "Reverse Stock Split Amendment") to effectuate a one-for-three reverse stock split of the Company's Common Stock, effective on September 3, 2019 (the "Reverse Stock Sphil"). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately pror to the effective time of the Reverse Stock Split were converted into one share of Common Stock, par value $0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment to revert the par value of the Common Stock issued and outstanding from $0.003 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Quarterly Report on Form 10-Q have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated

The Company conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company (collectively, the "Series A Preferred Stock") with an initial stated value of $25.00 per share, subject to adjustment (the "Series A Preferred Stock Stated Value"), and one warrant (collectively, the "Series A Preferred Warrants") to purchase 0.25 of a share of Common Stock, subject to adjustment (Note 10). Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Warrants using their relative fair values on the date of issuance.

Since February 2020, the Company has been conducting a continuous public offering of Series A Preferred Stock and Series D preferred stock, par value $0.001 per share (the "Series D Preferred Stock"), with an initial stated value of $25.00 per share, subject to adjustment (the "Series D Preferred Stock Stated Value"). The selies A Preferred Stock in the offering has been, and is expected to continue to be, $25.00 per share and the selling price of the Series D Preferred Stock was $25.00 per share for all sales that occurred from the beginning of the offering to and including June 28, 2020 and is expected to be, and since June 29, 2020, has been, $24.50 per share through the life of the offering.

In June 2021, the Company conducted a rights offering (the "Rights Offering") pursuant to which the Company issued an aggregate of 8,521,589 shares of Common Stock at a subscription price of $9.25 per share for aggregate gross proceeds of $78.8 million before issuance costs of $1.9 million.

CIM Commercial has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended.

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 15 (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
		2021		2020		2021		2020
Hotel properties
Hotel income	S	3,130	ದಿ	869	ದಿ	4,862	ಲ್ಲಿ	8,628
Rental and other property income		334		227		465		689
Interest and other income		13		18		28		50
Hotel revenues		3.477		1,114		5,355		9,367

Tenant recoveries outside of the lease agreements

Tenant recoveries outside of the lease agreements are related to construction projects in which the Company's tenants have agreed to fully reimburse the Company for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. No such amounts were recognized for tenant recoveries outside of the lease agreements for each of the three and six months ended June 30, 2021 and 2020. As of June 30, 2021, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements.

Loans Receivable-The Company's loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, deferred origination fees, retained loan discounts and loss reserves. Acquisition discounts or premiums, origination fees and retained loan discounts are amortized as a component of interest and other income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. All loans were originated pursuant to programs sponsored by the Small Business Administration (the "SBA"). The programs consist of loans originated under the SBA 7(a) Small Business Loan Program and, commencing with the quarter ended June 30, 2020, the Paycheck Protection Program (the "PPP").

Pursuant to the SBA 7(a) Small Business Loan Program, the Company sells the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by the Company is recorded at fair value and a discount is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $9.0 million as of June 30, 2021 and December 31, 2020, respectively.

At the Acquisition Date, the carrying value of the Company's loans was adjusted to estimated fair market value and acquisition discounts of $33.9 million were recorded, which are being accreted to interest and other income using the effective interest method. Acquisition discounts of $438,000 and $492,000 remained as of June 30, 2021 and December 31, 2020, respectively.

A loan receivable is generally classified as non-accrual (a "Non-Accrual Loan") if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (i) any portion of the loan is classified as doubtful or is charged-off or (ii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that the Company will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Income, included in interest and other income, on a Non-Accrual Loan is recognized on the cost recovery basis.

Loan Loss Reserves-On a quarterly basis, and more frequently if indicators exist, the Company evaluates the collectability of its loans receivable. The Company's evaluation of collectability involves significant judgment, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers' business models and future operations. For the three and six months ended June 30, 2021, the Company recorded a net recovery of $88,000 and a net impairment of $4,000, respectively, on its loans receivable. For the three and June 30, 2020, the Company recorded a net impairment of $36,000 and a net recovery of $16,000, respectively, on its loans receivable. There were no material loans receivable subject to credit risk which were considered to be impaired as of June 30, 2021 or December 31, 2020. The Company considers a loan to be impaired when the Company does not expect to collect all of the

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) – (Continued)

The following table reconciles the numerator and denominator used in computing the Company's basic and diluted per-share amounts for net loss attributable to common stockholders for the three and six months ended June 30, 2021 and 2020 (in thousands, except per share amounts):

	Three MonthsEnded June 30,					Six Months EndedJune 30,
	20212020				2021			2020
Numerator:
Net loss attributable to common stockholders				$ (4,210) $ (8,141) $(12,416) $(14,928)
Redeemable preferred stock dividends declared on dilutive shares								(1)
Diluted net loss attributable to common stockholders		(4,210)		$ (8,141) $ (12,416)				$ (14,929)
Denominator:
Basic weighted average shares of Common Stock outstanding		15,102		14,782		14,956		14,690
Effect of dilutive securities-contingently issuable shares
Diluted weighted average shares and common stock equivalents outstanding - 15,102				14,782		14,956		14,690
Net loss attributable to common stockholders per share:
Basic		(0.28)	A	(0.55)	ಕೊ	(0.83)	A	(1.02)
Diluted		(0.28)		(0.55)		(0.83)		(1.02

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

Series A Preferred Warrants and Series D Preferred Stock, respectively, as a reduction to the gross proceeds received. Such reclassification was based on the cumber of securities issued relative to the maximum number of securities expected to be issued under the offering. As of June 30, 2021, there were 7,098,258 shares of Series A Preferred Stock outstanding, 4.603.287 Series A Preferred Warrants to purchase 1.194.159 shares of Common Stock outstanding, and 31.025 shares of Series D Preferred Stock outstanding. As of June 30, 2021, 156,377 shares of Series A Preferred Stock and no shares of Series D Preferred Stock had been redeemed.

Series A Preferred Stock-The Company conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company with an initial stated value of $25.00 per share, subject to adjustment, and one warrant to purchase 0.25 of a share of Common Stock. Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

Since February 2020, the Company has been conducting a continuous public offering with respect to shares of the Company's Series A Preferred Stock, which, since such time, is no longer being issued as a unit with an accompanying Series A Preferred Warrant.

Net proceeds from the issuance of Series A Preferred Stock are initially recorded in temporary equity at an amount equal to the gross proceeds allocated to such shares of Series A Preferred Stock minus the costs specifically dentifiable to the issuance of such shares and the non-issuance specific offering costs allocated to such shares. If the net proceeds from the issuance of Series A Preferred Stock are less than the redemption value of such shares at the time they are issued, or if the redemption value of such shares subsequently becomes greater than the carrying value of such shares, an adjustment is recorded to increase the carrying amount of such shares to their redemption value as of the balance sheet date. Such adjustment is considered a deemed dividend for purposes of calculating basic and diluted EPS. For the three and six months ended June 30, 2021, the Company recorded redeemable preferred stock deemed dividends of $106,000, respectively, related to such adjustments. For the three and six months ended June 30, 2020, the Company recorded redeemable preferred stock deemed dividends of $52,000 and $213,000, respectively, related to such adjustments.

On the first anniversary of the issuance of a particular share of Series A Preferred Stock, the Company reclassifies such share of Series A Preferred Stock from temporary equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. As of June 30, 2021, the Company had reclassified an aggregate of $121.2 million in net proceeds from temporary equity to permanent equity.

Series D Preferred Stock-Since February 2020, the Company has been conducting a continuous public offering with respect to shares of its Series D Preferred Stock, par value $0.001 per share, subject to adjustment. The selling price of the Series D Preferred Stock was $25.00 per share for all sales that occurred from the offering to and including June 28, 2020 and is expected to be, and since June 29, 2020, has been, $24.50 per share through the end of the life of the offering. Shares of Series D Preferred Stock are recorded in permanent equity at the time of their issuance.

Series L Preferred Stock-On November 21, 2017, the Company issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $28.37 per share ("Series L Preferred Stock Stated Value"), subject to adjustment. The Company received gross proceeds of $229.3 million from the sale of the Series L Preferred Stock, which was reduced by issuance-specific offering costs, such as commissions, dealer manager fees, and other offering fees and expenses, totaling $15.9 million, a discount of $2.9 million, and non-issuance-specific costs of $2.5 million. These fees have been recorded as a reduction to the gross proceeds in permanent equity.

Until the fifth anniversary of the date of original issuance of the Series L Preferred Stock, the Company is prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distribution, and or dissolution or winding up of the Company unless the Minimum Fixed Charge Coverage Ratio, calculated in accordance with the Articles Supplementary describing the Series L. Preferred Stock, is equal to or greater than 1.25:1.00. As of June 30, 2021 and December 31, 2020, the Company was in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio.

Refer to Note 12 for a discussion of certain payments the Company has made in shares of Common Stock and in shares of Preferred Stock and may make in shares of Preferred Stock in lieu of cash payments in order to remain in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio.

Dividends-With respect to the payment of dividends, the Series A Preferred Stock ranks senior to the Series L Preferred Stock and the Common Stock, and on party with the Series D Preferred Stock. The Series L Preferred Stock ranks

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

shares issuable upon exercise of each Series A Preferred Warrant issued prior to the Special Dividend was adjusted to reflect the effect of the Special Dividend.

Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their values on the date of issuance. As of June 30, 2021, the Company had issued 4,603,287 Series A Preferred Warrants to purchase 1,194,159 shares of Common Stock in connection with the Company's offering of Series A Preferred Units and allocated net proceeds of $614,000, after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity.

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

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 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.

Management's estimation of the Company's 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 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 markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for the Company's financial instruments and the Company utilizes other methodologies based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value.

In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts the Company could realize in a current market exchange.

The following describes the methods the Company uses to estimate the fair value of the Company's financial assets and liabilities.

Debt-The carrying amounts of the Company's secured borrowings-government guaranteed loans, SBA 7(a) loanbacked notes, 2018 revolving credit facility and borrowed funds from the Federal Reserve through the PPPLF approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates. The Company determines the fair value of mortgage notes payable and junior subordinated notes by performing discounted cash flow analyses using an appropriate market discount rate. The Company calculates the market discount rate for its mortgage notes payable by obtaining period-end treasury or swap rates, as applicable, for maturities that correspond to the Company's debt and then adding an appropriate credit spreads take into account factors such as the Company's credit standing, the maturity of the debt, whether the debt is secured or unsecured, and the loan-to-value ratios of the debt. When estimating the fair value of the Company's mortgages payable as of June 30, 2021 and December 31, 2020, the Company used a rate of 3.30% and 3.38%, respectively. The rate the fair value of the Company's junior subordinated notes was 4.40% and 4.49% as of June 30, 2021 and December 31, 2020, respectively.

Loans Receivable-The Company determines the fair value of loans receivable by performing a present value analysis for the anticipated future cash flows using an appropriate market discount rate taking into consideration the credit risk and using an anticipated prepayment rate. The value of the government guaranteed portions of loans held for sale is based

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

CIM SBA for the costs and expenses of providing such personnel and resources. The expense is included in expense reimbursements to related parties-lending segment in the accompanying consolidated statements of operations.

Offering-Related Fees-The Company had an Amendment, Assignment and Assumption Agreement (the "Assignment Agreement") with CCO Capital"). CCO Capital"). CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. As a result of the Assignment Agreement, CCO Capital became the exclusive dealer manager for the Company's public offering of the Series A Preferred Units effective as of May 31, 2019. The Company's offering of the Series A Preferred Units end of January 2020. On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acts as the exclusive dealer manager for the Company's public offering of its Series A Preferred Stock and Series D Preferred Stock. Thereunder, the Company agreed to pay CCO Capital, as the dealer manager for the offering, (1) an upfront dealer manager fee of up to 1.25% of the selling price of each share of Preferred Stock sold, (2) selling commissions of up to 5.50% of the selling price of each share of Series A Preferred Stock sold (with no selling commissions payable in respect of Series D Preferred Stock sold) and (3) a trailing dealer manager fee that accrues daily in an amount equal to 1/365" of 0.25% per annum of the selling price of each share of Preferred Stock sold. CCO Capital, in its sole discretion, may reallow to another brokerdealer authorized by it to sell shares in the offering a portion of the upfront dealer manager fee earned by it in respect of shares sold by such broker-dealer.

On April 9, 2020, the Company entered into Amendment No. 1 to the Second Amended and Restated Dealer Manager Agreement, pursuant to which the selling commissions were increased from up to 5.00% to up to 7.00% of the selling price of each share of Series A Preferred Stock sold thereafter. The Company has been informed that CCO Capital generally reallows 100% of the selling commissions on sales of Series A Preferred Stock and generally reallows substantially all of the upfront dealer manager fee on sales of Series A Preferred Stock and Series D Preferred Stock, to participating brokers.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated (in thousands):

	Three Months EndedJune 30,				Six Months EndedJune 30,
	20212020		2021			2020
Asset Management Fees:
Asset management fees (1)	S	2,260	ಕೆ	2,376	S	4,519	ಕಿ	4,739
Property Management Fees and Reimbursements:
Property management fees	S	404	S	370	S	807	S	797
Onsite management and other cost reimbursement	S	755	S	ર્ભાર	S	1,564	S	1,584
Leasing commissions	S	33	S	43	S	48	S	83
Construction management fees	S	22	S	107	S	35	S	277
Administrative Fees and Expenses:
Base service fee (2)	S		S		S		S	282
Expense reimbursements to related parties - corporate	S	454	S	ર્ભ રિ	S	1,059	S	1,427
Lending Segment Expenses:
Expense reimbursements to related parties - lending segment	S	433	S	998	S	1,164	S	1,680
Offering-Related Fees:
Upfront dealer manager and trailing dealer manager fees	S	272	S	350	S	422	S	289
Non-issuance specific offering costs (3)	S	43	S	21	S	64	S	45

(1) For the three and six months ended June 30, 2020, the Company issued to the Operator 203,349 shares of Common Stock, in lieu of cash payment of the asset management fee for the first quarter of 2020, and 95,245 shares of our Series A Preferred Stock, in lieu of cash payment of the asset management fee for the second quarter of 2020. Subsequent to June 30, 2021, the Company issued to the Operator 89,338 shares of Series A Preferred Stock in lieu of cash payment of the asset management fee for the first quarter of 2021.

(2) Preferred Stock, in lieu of cash as payment of the Base Service Fee for the first quarter of 2020.

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) – (Continued)

16. SUBSEQUENT EVENTS

The following events occurred subsequent to June 30, 2021:

Property Acquisition

In July 2021, the Company acquired from an unrelated third-party a 100% fee-simple interest in an office property located in Los Angeles, California for a purchase price of $2.9 million, which excludes transaction costs of $44,000 that were incurred and capitalized in connection. The property has approximately 4,900 square feet of office space.

Debt

Subsequent to June 30, 2021, the Company repaid $25.0 million on its 2018 revolving credit facility.

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

This Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), which are intended to be covered by the safe harbors created thereby. Such forward-looking statements can be identified by the use of forward-looking terminology such as "may" "will," "project," "target," "intend" "believe" "anticipate," "ectimte," "could," "could," "would," "continue," "potential," "forecast," "seek," "plan," or "sho variations or similar words or phrases. Such forward-looking statements include, among others, statements about CMCT's plans and objectives relating to future growth and availability of funds, and the trading liquidity of CMCT's Common Stock. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the scope, severity and duration of the current pandemic of CVVID-19, and actions taken to contain the pandemic or mitigate its impact, (ii) the adverse effect of COVID-19 on the financial condition, results of operations, cash flows and performance of CMCT and its tenants and business partners, the real estate market and the global economy and financial markets, (iii) the timing, form and operational effects of CMCT's development activities, (iv) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (v) fluctuations in market rents, including as a result of COVID-19, and (vi) general economic, market and other conditions. Additional important factors that could cause CMCT's actual results to differ materially from CMCT's expectations are discussed under the sectors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 16, 2021 and amended on April 30, 2021 (the "2020 Form 10-K"). The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT's control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this Form 10-2 will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT's objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made.

The following discussion of our financial condition as of June 30, 2021 and results of operations for the three and six months ended June 30, 2021 and 2020 should be read in conjunction with the 2020 Form 10-K. For a more detailed description of the risks affecting our financial condition and results of operations, see "Risk Factors" in Part I, Item 1A of the 2020 Form 10-K and in Part II, Item 1A of this Quarterly Report. Capitalized terms used herein, but not otherwise defined, shall have the meaning ascribed to those terms in "Part I - Financial Information" of this Quarterly Report on Form 10-Q, including the notes to the consolidated financial statements contained therein. The terms "we," "us," "our" and the "Company" refer to CIM Commercial Trust Corporation and its subsidiaries.

Definitions

We use certain defined terms throughout this Quarterly Report on Form 10-Q that have the following meanings:

The phrase "ADR" represents average daily rate. It is calculated as trailing 6-month room revenue divided by the number of rooms occupied.

The phrase "annualized rent" represents gross monthly base rent, or gross monthly contractual rent under parking and retail leases, multiplied by 12. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent.

The phrase "RevPAR" revenue per available room. It is calculated as trailing 6-month room revenue divided by the number of available rooms.

Executive Summary

Business Overview

CIM Commercial is a Maryland corporation and REIT. We primarily own and operate Class A and creative office real assets in vibrant and improving metropolitan communities throughout the United States. We, supported by the broad real estate capabilities of CIM Group, seek to focus on the acquisition, ownership, operation and development of cash flowing creative office, multifamily, retail, parking, infill industrial and limited service hospitality real assets in communities qualified by CM Group. These communities are located in areas that include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, positive population trends and a propensity for growth. We believe that the critical mass of redevelopment in such areas creates positive externalities, which enhance the value of real estate assets in the area. We believe that these assets will provide greater returns than similar assets in other markets, as a result of the population growth, public commitment, and significant private investment that characterize these areas. We intend that no acquisition will exceed more than 10% of our gross asset value.

We are operated by affiliates of CIM Group. CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Headquartered in Los Angeles, CA, CIM has offices across the United States and in Tokyo, Japan.

COVID-19

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. Since then, COVID-19 has spread worldwide, causing significant disruptions to the U.S. and world economies. and has triggered a period of significant global economic slowdown. In the first half of 2021, the U.S. and world economy initially showed signs of recovery from the impact of COVID-19 as vaccination rates increased, virus caseloads declined and businesses, schools and public services began to reopen. However, the emergence of variant strains of COVID-19 has threatened to slow or reverse these trends in the third quarter of 2021 and beyond. As a result, there continues to be uncertainty regarding the continued impact of COVID-19 on the U.S. and international economies.

The information provided in the table below provides insight into the effects of COVID-19 on our rent collections for the three months ended June 30, 2021 for our parking tenants. For the three months ended June 30, 2021, rent collections for our office and retail tenants were generally consistent with such rent collections prior to the effects of COVID-19. We undertake no obligation to provide rent collection, concession or allowance information for any future period. The information presented below is preliminary and unaudited, and we undertake no obligation to update such information other than as may be required by law:

Parking Tenants(1)	Three Months EndedJune 30, 2021
Rent Collected (2)	32.3 %
Recorded as Bad Debt	67.7 %
Total	100.0 %

There have been no significant changes in parking tenant rent collections subsequent to June 30, 2021. (1)

Rent collected is calculated as the aggregate contractual rent collected for each month in the applicable period (2) presented from the beginning of that month through August 2, 2021, divided by the aggregate contractual rent charged for the applicable period. Rent collection percentages are calculated based on contractual rents (excluding percentage rents and contractually obligated reimbursements by our tenants).

Additionally, the spread of COVID-19 in the United States and the resulting restrictions on travel, meetings and social gatherings that have been implemented from time have impacted, and are expected to continue to materially impact so long as they persist, the operations of our hotel in Sacramento, California. For the three months ended June 30, 2021, the hotel segment net operating loss of our hotel was $2,000. Based on current expectations, we anticipate that the net operating income of our hotel for the second half of 2021 will be lower as compared to pre-COVID-19 levels for the comparable periods. As a result, contributions by the hotel to our funds from operations during such periods will be significantly diminished.

Our lending division has also suffered adverse impacts relating to COVID-19. Loans originated and serviced under the SBA 7(a) Small Business Loan Program through June 30, 2021 consist primarily of loans to borrowers in the limited service hospitality sector. Since the onset of COVID-19 in the United States, our borrowers have been experiencing significant reductions in cash flow as the travel and leisure industry decline caused by COVID-19 has continued to impact limited service

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Summary Segment Results

During the three months ended June 30, 2021 and 2020, CIM Commercial operated in three segments: office and hotel properties and lending. Set forth and described below are summary segment results for our operating segments (dollar amounts in thousands).

	Three Months Ended June 30,					Change
		2021		2020		S	0/0
Revenues:
Office	S	13,356	S	13,763	S	(407)	(3.0)%
Hotel	S	3,477	S	1,114	S	2,363	212.1 %
Lending	S	5,839	S	1,598	S	4,241	265.4 %

Expenses:
Office	S	5,770	S	5,504	S	266	4.8 %
Hotel	ಕಾ	3,479	S	2,232	S	1,247	55.9 %
Lending	S	792	S	1,708	S	(916)	(53.6)%

Non-Segment Revenue and Expenses:
Interest and other income	ಕ್ಕಿ		S	ે રે	S	(34)	(97.1)%
Asset management and other fees to related parties	S	(2,260)	ಕ	(2,376)	સ્ત્ર	116	(4.9)%
Expense reimbursements to related parties - corporate	S	(454)	es	(615)	સ્ત્ર	161	(26.2)%
Interest expense	S	(2,491)	ಕ್ಕಾ	(2,707)	સ્ત્ર	216	(8.0)%
General and administrative	ಕ್ಕಿ	(835)	es	(903)	ર્જિ	68	(7.5)%
Depreciation and amortization	S	(5,069)	es	(5,197)	સ્ત્ર	128	(2.5)%
(Provision) benefit for income taxes	S	(996)	ਟੈ	691	S	(1,687)	(244.1)%

Revenues

Office Revenue: Office revenue includes rental revenue, expense reimbursements and lease termination income from office properties. Office revenue decreased to $13.4 million, or by 3.0%, for the three months ended June 30, 2021 compared to $13.8 million for the three months ended June 30, 2020. The decrease is primarily due to lower revenues at an office property in Los Angeles, California and at an office property in Beverly Hills, California due to decreases in occupancy as compared to the second quarter of 2020.

Hotel Revenue: Hotel revenue increased to $3.5 million, or by 212.1%, for the three months ended June 30, 2021, compared to $1.1 million for the three months ended June 30, 2020, primarily due to an increase in occupancy, average daily rate, and food, beverage, and other sundry hotel services during the second quarter of 2021 as compared to the second quarter of 2020 as a result of the easing of government restrictions associated with COVID-19. However, the outbreak of COVID-19 will likely continue to negatively affect the operations of our hotel through the remainder of 2021 as described in "—COVID-19" above.

Lending Revenue: Lending revenue represents revenue from our lending subsidiaries, including interest income on loans and other loan related fee income. Lending revenue increased to $5.4%, for the three months ended June 30, 2021, compared to $1.6 million for the three months ended June 30, 2020. The increase is primarily due to an increase in premium income from the sale of the guaranteed portion of our SBA 7(a) loans, which benefited from an increase in the SBA guaranty support from a maximum of 75% per loan and higher market premiums (noting that the level of guaranty support from the SBA is not permanent and may be changed back to 75% at any time by act of Congress). In addition, there was an interest income resulting from an increase in our average outstanding lending portfolio during the three months ended June 30, 2021 compared to the three months ended June 30, 2020.

Expenses

Office Expenses: Office expenses increased to $5.8 million, or by 4.8%, for the three months ended June 30, 2021, compared to $5.5 million for the three months ended June 30, 2020. The increase is primarily due to an increase in operating expenses at our office property in Oakland, California.

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Summary Segment Results

During the six months ended June 30, 2021 and 2020, CIM Commercial operated in three segments: office and hotel properties and lending. Set forth and described below are summary segment results for our operating segments (dollar amounts in thousands).

	Six Months Ended June 30,			Change
		2021		2020		S	0/0
Revenues:
Office	S	26,883	S	28,660	S	(1,777)	(6.2)%
Hotel	S	5,355	S	9,367	S	(4,012)	(42.8)%
Lending	ಕ್ಕಾ	9,313	S	3,982	S	5,331	133.9 %

Expenses:
Office	S	11,510	S	11,648	S	(138)	(1.2)%
Hotel	S	6,164	S	8,714	S	(2,550)	(29.3)%
Lending	S	2,160	S	3,081	S	(921)	(29.9)%

Non-Segment Revenue and Expenses:
Interest and other income	ಕ್ಕಿ	-	S	36	S	(35)	(97.2)%
Asset management and other fees to related parties	S	(4,519)	es	(5,021)	es	502	(10.0)%
Expense reimbursements to related parties - corporate	S	(1,059)	ਦਿੱਤਾ। ਉ	(1,427)	es	368	(25.8)%
Interest expense	S	(4,932)	es	(5,583)	es	651	(11.7)%
General and administrative	ಕ್ಕಿ	(2,876)	ಕೆ	(2,126)	S	(750)	35.3 %
Depreciation and amortization	S	(10,106)	ರಿ	(10,455)	ಕ್ಕಾ	349	(3.3)%
(Provision) benefit for income taxes	S	(1,370)	ರಿ	713	S	(2,083)	(292.1)%

Revenues

Office Revenue: Office revenue includes rental revenue, expense reimbursements and lease termination income from office properties. Office revenue decreased to $26.9 million, or by 6.2%, for the six months ended June 30, 2021 compared to $28.7 million for the six months ended June 30, 2020. The decrease is primarily due to lower revenues at an office property in Los Angeles, California, and lower revenues at an office property in Beverly Hills, California due to decreases in occupancy as compared to the six months ended June 30, 2020.

Hotel Revenue: Hotel revenue decreased to $5.4 million, or by 42.8%, for the six months ended June 30, 2021, compared to $9.4 million for the six months ended June 30, 2020, primarily due to decreases in occupancy, average daily rate, and food, beverage, and other sundry hotel services during the period January 2021 as compared to March 2020 through June 2020 as a result of COVID-19 (see "—COVID-19" above). The outbreak of COVID-19 will likely continue to negatively affect the operations of our hotel through the remainder of 2021 as described in "—COVID-19" above.

Lending Revenue: Lending revenue represents revenue from our lending subsidiaries, including interest income on loans and other loan related fee income. Lending revenue increased to $9.3 million, or by 133.9%, for the six months ended June 30, 2021, compared to $4.0 million for the six months ended June 30, 2020. The increase in premium income from the sale of the guaranteed portion of our SBA 7(a) loans, which benefited from an increase in the SBA guaranty support from a maximum of 75% per loan and higher market premiums (noting that the level of guaranty support from the SBA is not permanent and may be changed back to 75% at any time by act of Congress).

Expenses

Office Expenses: Office expenses decreased to $11.5 million, or by 1.2%, for the six months ended June 30, 2021, compared to $11.6 million for the six months ended June 30, 2020.

Hotel Expenses: Hotel expenses decreased to $6.2 million, or by 29.3%, for the six months ended June 30, 2021, compared to $8.7 million for the six months ended June 30, 2020, primarily as a result of decreased occupancy at the hotel during the period January 2021 through June 2021 as compared to March 2020 through June 2020 as a result of COVID-19. The outbreak of COVID-19 is expected to cause hotel expenses to remain lower through the remainder of 2021 as compared to pre-COVID-19 levels for the comparable periods.

Lending Expenses: Lending expenses represent expenses from our lending subsidiaries, including interest expense, general and administrative expenses and fees to related party. Lending expenses decreased to $2.2 million, or by 29.9%, for the six months ended June 30, 2021, compared to $3.1 million for the six months ended June 30, 2020, primarily due to a decrease in costs incurred and expense reimbursements to related partes during the six months ended June 30, 2020 related to the development of the loan origination platform for the PPP and assistance with origination of SBA 7(a) loans under the PPP not recurring during the six months ended June 30, 2021.

Asset Management and Other Fees to Related Parties: Asset management fees and other fees to related parties, which have not been allocated to our operating segments, were $4.5 million for the six months ended June 30, 2021, a decrease of $502,000, compared to $5.0 million for the six months ended June 30, 2020. Asset management fees totaled $4.5 million for the six months ended June 30, 2021, compared to $4.7 million for the six months ended June 30, 2020. Asset management fees are calculated based on a percentage of the daily average adjusted fair value of CIM Urban's assets, which are appraised in the fourth quarter of each year. The lower fees reflect a decrease in the adjusted fair value of CIM Urban's assets as compared to the second quarter of 2020 due to lower appraised values of our same store properties, partially offset by the purchase of an office property and incremental capital expenditures incurred subsequent to June 30, 2020.

CIM Commercial also paid a Base Service Fee to the Administrator, a related party, which totaled $0 for the six months ended June 30, 2021 compared to $282,000 for the six months ended June 30, 2020. On May 11, 2020, the Master Services Agreement was amended to replace the Base Service Fee. The amendment was effective as of April 1, 2020. Based on our expected performance of 2021, it is very likely that we will not pay any Incentive Fee in 2021.

Expense Reimbursements to Related Parties-Corporate: The Administrator receives compensation and or reimbursement for performing certain services for CIM Commercial and its subsidiaries that are not covered by the Base Service Fee or the Incentive Fee, as the case may be. Expense reimbursements to related parties-corporate were $1.1 million for the six months ended June 30, 2021, a decrease of 25.8%, compared to $1.4 million for the six months ended June 30, 2020. The decrease was primarily due to reductions in allocated payroll.

Interest Expense: Interest expense, which has not been allocated to our operating segments, was $4.9 million for the six months ended June 30, 2021, a decrease of $651,000 compared to $5.6 million for the six months ended June 30, 2020. The decrease is primarily due to a lower average outstanding principal balance on our 2018 revolving credit facility during the six months ended June 30, 2021 compared to the six months ended June 30, 2020, partially offset by an increase in interest expense on our revolving credit facility resulting from the 2018 Credit Facility Modification.

General and Administrative Expenses: General and administrative expenses, which have not been allocated to our operating segments, were $2.9 million for the six months ended June 30, 2021, an increase of $750,000 compared to $2.1 million for the six months ended June 30, 2020. The increase is primarily due to an increase in legal fees as compared to the six months ended June 30, 2020.

Depreciation and Amortization Expense: Depreciation and amortization expense was $10.1 million for the six months ended June 30, 2021, a decrease of $349,000 compared to $10.5 million for the six months ended June 30, 2020.

(Provision) Benefit for Income Taxes: Provision for income taxes was $1.4 million for the six months ended June 30, 2021 compared to a benefit for income taxes of $713,000 for the six months ended June 30, 2020. The increase in provision for income taxes is due to an increase in taxable income at our taxable REIT subsidiaries during the six months ended June 30, 2021 related to the operating results of our lending division.

Cash Flow Analysis

Our cash flows from operating activities are primarily dependent upon the real estate assets owned, occupancy level of our real estate assets, the rental rates achieved through our leases, the collectability of rent and recoveries from our tenants, and loan related activity, many of which were negatively impacted by the effects of COVID-19 during the six months ended June 30, 2021 and June 30, 2020. Our cash flows from operating activities are also impacted by fluctuations in operating expenses and other general and administrative costs. Net cash provided by operating activities increased by $12.6 million for the six months ended June 30, 2021, as compared to the same period in 2020. The increase was primarily due to an increase of $38.3 million in proceeds from the sale of guaranteed loans, partially offset by an increase of $36.2 million in loans

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Creative Media & Community Trust Corporation — Interim / Quarterly Report 2021

6737_rns_2021-08-10_795fc6f6-fb6f-4f72-b922-e47be5b9c6c9.pdf

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

FORM 10-Q

(Mark One):

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

CIM COMMERCIAL TRUST CORPORATION

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PART I Financial Information Item 1. Financial Statements CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Equity

(In thousands, except share and per share amounts) (Unaudited)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Equity (Continued)

(In thousands, except share and per share amounts) (Unaudited) Six Months Ended June 30, 2020

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Continued) (In thousands) (Unaudited)

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited)

1. ORGANIZATION AND OPERATIONS

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) – (Continued)

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) - (Continued)

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

Level 3 Inputs-Unobservable inputs

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CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 (Unaudited) – (Continued)

16. SUBSEQUENT EVENTS

Property Acquisition

Debt

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Definitions

Executive Summary

Business Overview

COVID-19

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Table of Contents

Summary Segment Results

Revenues

Expenses

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