On December 24, 2019, Strategic Realty Trust, Inc. (the ?Company?) entered into a Loan Agreement (the ?SRT Loan Agreement?) with PFP Holding Company, LLC (the ?SRT Lender?) for a non-recourse secured loan (the ?SRT Loan?). The SRT Loan is secured by first deeds of trust on the Company?s five San Francisco assets (Fulton Shops, 8 Octavia, 400 Grove, 450 Hayes and 388 Fulton Street) as well as the Company?s Silverlake Collection located in Los Angeles and as of September 30, 2023, had a principal balance outstanding of approximately $18.0 million. On January 18, 2024, the SRT Lender notified the Company that it was in default on the SRT Loan following its failure to pay the amount of the debt outstanding and due to the lender on the January 9, 2024 maturity date.

The Company has the option to extend the SRT Loan for an additional twelve-month period subject to satisfaction of certain covenants and conditions as set forth in the SRT Loan Agreement which conditions were not satisfied as of the maturity date. The Company expects to satisfy the required covenants and conditions to extend the maturity date until January 9, 2025 and cure the default. If the Company is unable to cure the default, the SRT Lender could foreclose on the properties which secure the SRT Loan.