Presidio Property Trust(SQFT) - 2024 Q4 - Annual Results

Company Overview Presidio Property Trust, Inc., founded in 1999, is an internally managed real estate company focused on acquiring, owning, and managing office and industrial assets, alongside a portfolio of model homes - Presidio Property Trust, Inc. operates as an internally managed real estate company, specializing in office and industrial assets and model homes since its founding in 1999[10] Corporate Information & Portfolio Value | Metric | Value | | :--- | :--- | | Headquarters | San Diego, CA | | Key Geographies | CA, CO, MD, ND & TX | | Employees | 15 | | Portfolio Book Value | $127.6 million | | Existing Secured Debt | $102.8 million | Portfolio Summary | Property Type | Count | Square Footage | | :--- | :--- | :--- | | Office | 8 properties | 608,076 sqft | | Retail | 3 properties | 65,242 sqft | | Industrial | 1 property | 150,099 sqft | | Model Homes | 78 homes | 236,955 sqft | Portfolio Details This section details the company's commercial and model homes portfolios, including property types, square footage, occupancy, and key transactional updates Commercial Portfolio The commercial portfolio comprises 12 office, industrial, and retail properties totaling 823,417 sq. ft. with 81.8% occupancy, marked by recent impairments, sales, and ongoing leasing efforts Commercial Portfolio Overview (Office/Industrial & Retail) | Metric | Office/Industrial | Retail | | :--- | :--- | :--- | | Total Square Feet | 758,175 | 65,242 | | Occupancy | 81.0% | 86.2% | | Purchase Price | $91.9M | $19.0M | | Mortgage on Property | $60.6M | $13.0M | - The Dakota Center property was impaired by approximately $0.7 million and is being sold to settle its non-recourse loan balance[12] - In February 2025, the Union Town Center and Research Parkway properties were sold for a combined $16.95 million, resulting in an approximate gain of $4.3 million[12] - Following the expiration of the Halliburton lease at Shea Center II at the end of 2022, management is working to fill the vacant space, with approximately 54% of the space leased as of February 2025[12] Model Homes Portfolio The model homes portfolio consists of 78 properties totaling 236,955 square feet, with a significant concentration in Texas, accounting for 91.5% of the total annual rent Model Homes Portfolio by State | State | No. of Properties | Aggregate Square Feet | % of Square Feet | Current Base Annual Rent | % of Aggregate Annual Rent | | :--- | :--- | :--- | :--- | :--- | :--- | | Arizona | 2 | 6,822 | 2.9% | $149,196 | 4.4% | | Florida | 3 | 8,199 | 3.4% | $136,812 | 4.1% | | Texas | 73 | 221,934 | 93.7% | $3,086,580 | 91.5% | | Total | 78 | 236,955 | 100.0% | $3,372,588 | 100.0% | Consolidated Financial Statements This section presents the company's consolidated balance sheets, statements of operations, and cash flows, highlighting key financial performance and position changes Consolidated Balance Sheets As of December 31, 2024, total assets decreased to $142.6 million from $176.0 million in 2023, primarily due to reduced real estate assets and a significant write-down of Conduit Pharmaceuticals securities, leading to a decline in total equity Consolidated Balance Sheet Summary (in millions) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Real estate assets, net | $127.6 | $144.2 | | Investment in Conduit Pharma securities | $0.2 | $18.3 | | Total Assets | $142.6 | $176.0 | | Mortgage notes payable, total net | $102.1 | $107.7 | | Total Liabilities | $107.6 | $114.6 | | Total Equity | $34.9 | $61.3 | - The value of the investment in Conduit Pharmaceuticals marketable securities plummeted from $18.3 million at year-end 2023 to $206,177 at year-end 2024[15] - Real estate assets held for sale increased significantly from $5.5 million in 2023 to $22.2 million in 2024, reflecting management's strategy to sell certain properties[15] Consolidated Statements of Operations For the year ended December 31, 2024, the company reported a net loss of $27.9 million, or $(2.25) per share, a significant decline from 2023's net income, primarily due to a $17.9 million loss on Conduit Pharmaceuticals securities and the absence of a prior-year $40.3 million SPAC deconsolidation gain Consolidated Statement of Operations Summary | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total Revenue | $18,925,275 | $17,635,614 | | Net loss in Conduit Pharma securities | $(17,925,723) | $(23,359,774) | | Gain on deconsolidation of SPAC | — | $40,321,483 | | Net (loss) income attributable to common stockholders | $(27,865,225) | $8,027,600 | | Basic & Diluted (loss) income per share | $(2.25) | $0.68 | - Total revenue increased by 7.3% year-over-year, from $17.6 million in 2023 to $18.9 million in 2024[17] - A significant factor in the 2024 net loss was the $17.9 million loss on Conduit Pharmaceuticals marketable securities, while the 2023 net income was heavily influenced by a one-time $40.3 million gain on the deconsolidation of a SPAC[17] Consolidated Statements of Cash Flows In 2024, the company reported a net cash outflow from operating activities of $0.7 million, a reversal from 2023, while investing activities provided $12.9 million primarily from real estate sales, leading to a $1.5 million increase in cash to $8.0 million by year-end Consolidated Cash Flow Summary | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(728,060) | $1,448,573 | | Net cash provided by investing activities | $12,866,819 | $120,598,553 | | Net cash (used in) financing activities | $(10,612,691) | $(132,053,423) | | Net increase (decrease) in cash | $1,526,068 | $(10,006,297) | | Cash at end of period | $8,036,496 | $6,510,428 | - The shift to negative operating cash flow was primarily due to the large net loss, despite non-cash adjustments like the loss on marketable securities[19] - Investing activities were a significant source of cash in 2024, driven by $24.8 million in proceeds from real estate sales, which offset $9.7 million in real estate acquisitions[19] Non-GAAP Financial Measures and Reconciliations This section provides reconciliations for key non-GAAP financial measures, including EBITDAre, FFO, and Core FFO, detailing their calculation and performance EBITDAre Reconciliation The company's EBITDAre improved to $225,724 in 2024 from a negative $(251,757) in 2023, despite a significant net loss, primarily due to substantial add-backs for non-cash expenses and a smaller securities loss adjustment EBITDAre Reconciliation Summary | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net (loss) income attributable to common stockholders | $(27,865,225) | $8,027,600 | | Adjustments (Interest, D&A, Impairment, etc.) | $28,090,949 | $(8,279,357) | | EBITDAre | $225,724 | $(251,757) | FFO and Core FFO Reconciliation Both FFO and Core FFO declined in 2024, with FFO worsening to $(3.4) million and Core FFO decreasing to $(2.0) million, resulting in a Core FFO per share of $(0.160), and no common stock dividends were paid FFO and Core FFO Summary | Metric | 2024 | 2023 | | :--- | :--- | :--- | | FFO | $(3,360,660) | $(1,889,786) | | Core FFO | $(1,981,580) | $(900,271) | | Core FFO / Share | $(0.160) | $(0.076) | | Quarterly Dividends / Share | $— | $0.091 | Segment Data This section provides a breakdown of financial performance and assets by the company's reportable segments: Retail, Office/Industrial, and Model Homes - All three reportable segments—Retail, Office/Industrial, and Model Homes—demonstrated year-over-year growth in Net Operating Income (NOI) for 2024[26] Net Operating Income (NOI) by Segment | Segment | 2024 NOI | 2023 NOI | | :--- | :--- | :--- | | Retail | $1,511,996 | $1,346,941 | | Office/Industrial | $6,201,988 | $5,673,913 | | Model Homes | $4,264,632 | $3,975,636 | Assets by Reportable Segment | Segment | 2024 Total Assets | 2023 Total Assets | | :--- | :--- | :--- | | Office/Industrial | $76,292,662 | $78,140,372 | | Model Home Properties | $38,166,964 | $51,456,292 | | Retail Properties | $16,673,605 | $16,539,399 | | Total Segment Assets | $131,133,231 | $146,136,063 | - Total assets for reportable segments decreased from $146.1 million in 2023 to $131.1 million in 2024, with the most significant reduction occurring in the Model Home Properties segment[27] Definitions – Non-GAAP Measurements This section provides the formal definitions for key non-GAAP financial measures used by the company, including EBITDAre, FFO, and Core FFO - EBITDAre is defined as earnings before interest, taxes, depreciation, amortization, gain/loss on disposal of depreciated assets, and impairment write-offs[29] - Funds from Operations (FFO) is a non-GAAP measure defined as net income or loss, excluding gains or losses from property sales and impairment charges, and adding back depreciation and amortization[30] - Core Funds from Operations (Core FFO) is calculated by adjusting FFO for non-core items such as acquisition costs, loss on early extinguishment of debt, and the amortization of stock-based compensation[32]