Copper Property CTL Pass Through Trust Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

INVESTMENT PROPERTIES

INVESTMENT PROPERTIES

9 Months Ended

Sep. 30, 2025

Held for Sale and Other Accounting Considerations

As of September 30, 2025, the Trust concluded that it is probable that the sale transaction for all Retail Properties pursuant to the Agreement will occur, and therefore all Retail Properties meet held for sale criteria. This conclusion was based on the evaluation of the Trust and Buyer's progress made toward closing the sale transaction and the specific facts and circumstances as of that date. Because the sale transaction represents the sale of all of the remaining real estate investments of the Trust, assets and liabilities have not been presented as held for sale on the accompanying consolidated balance sheets. Additionally, the income statement does not reflect discontinued operations because post sale the Trust will have no remaining operating assets. The only assets and liabilities that will remain on the balance sheet post sale are cash and cash equivalents and certain accounts payable and accrued expenses. Given that the Trust was designed to sell all of its assets in an orderly fashion, the Trust has not and will not adopt liquidation accounting.

The Trust recognized an impairment charge of $10,671 based on its estimate of the fair value of the assets and liabilities associated with investment properties held for sale, less anticipated costs to sell.

As of December 31, 2024, there were no properties classified as held for sale.

Lease Intangibles

Amortization of lease intangible assets and lease intangible liabilities for the three and nine months ended September 30, 2025 and 2024 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Amortization of:
In-place lease intangibles	$	1,086	$	1,148	$	3,284	$	3,510
Above market lease intangibles	1,817		1,881		$	5,522	$	5,679
Below market lease intangibles	1,103		1,264		$	3,345	$	3,919

Dispositions

The following table summarizes the disposition activity during the nine months ended September 30, 2025:


Sale Date	Location	Property Type	Ownership	Square Footage	Gross Sales Proceeds		Aggregate Proceeds, Net		Gain (Loss)
5/23/25	Miami, FL	Retail	Ground Leasehold	191	$	15,576	$	15,147	$	6,230
5/23/25	Pittsburgh, PA	Retail	Fee Simple	182	5,260		5,080		(110)
9/4/2025	New Braunfels, TX	Retail	Fee Simple	104	4,942		4,820		(1,391)
9/4/2025	Houston, TX	Retail	Fee Simple	104	7,412		7,218		(456)
				581	$	33,190	$	32,265	$	4,273

For the three months ended September 30, 2025, loss on sales of investment properties was $1,851, which includes $4 of selling expenses from the May 2025 disposition of the Retail Property located in Miami, FL and $1,847 from the disposition of Retail Properties in September 2025 as noted in the table above. For the nine months ended September 30, 2025, net gain on sales of investment properties was $4,273 as noted in the table above.

The following table summarizes the disposition activity during the nine months ended September 30, 2024:


Sale Date	Location	Property Type	Ownership	Square Footage	Gross Sales Proceeds		Aggregate Proceeds, Net		Gain
3/15/24	Transnational Portfolio (1)	Retail	Fee Simple	302	$	16,459	$	16,096	$	1,497
6/10/24	Roseville, CA	Retail	Fee Simple	167	13,364		13,113		1,026
9/30/24	Miami, FL	Retail	Fee Simple	150	12,249		12,107		1,869
				619	$	42,072	$	41,316	$	4,392

(1) Portfolio comprised of three Retail Properties located in Newnan, GA, Aurora, CO and Kissimmee, FL.

For the three months ended September 30, 2024, gain on sales of investment properties was $1,866, which includes $3 of selling expenses from the September 2024 disposition of the Retail Property located in Miami, FL. For the nine months ended September 30, 2024, net gain on sales of investment properties was $4,316, which includes (i) $154 of selling expenses from prior period dispositions, (ii) a gain of $78 in proceeds released from escrow due to a disposition that occurred in December 2022 and (iii) a gain of $4,392 from the disposition of Retail Properties as noted in the table above.

The dispositions completed during the nine months ended September 30, 2025 and 2024 did not qualify for discontinued operations treatment and are not considered individually significant.

Impairment of Investment Properties

For the nine months ended September 30, 2025, the Trust recognized an impairment charge of $10,671 based on its estimate of the fair value of the assets and liabilities associated with investment properties held for sale, less anticipated costs to sell, based on the contracted sale price for the portfolio (see Note 1).