Presidio Property Trust(SQFT) - 2025 Q1 - Quarterly Report

Part I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited consolidated financial statements for the quarter ended March 31, 2025, including balance sheets, statements of operations, changes in equity, cash flows, and notes Consolidated Financial Statements As of March 31, 2025, total assets were $135.4 million and total equity $36.6 million, with Q1 2025 net income of $2.38 million ($0.13 per share) driven by real estate sales Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total real estate assets, net | 117.4 million | 127.6 million | | Cash, cash equivalents and restricted cash | 12.0 million | 8.0 million | | Total Assets | 135.4 million | 142.6 million | | Total mortgage notes payable, net | 93.7 million | 102.1 million | | Total Liabilities | 98.9 million | 107.6 million | | Total Equity | 36.6 million | 34.9 million | Consolidated Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Total Revenue | 4.1 million | 4.8 million | | Gain on sales of real estate, net | 4.45 million | 2.02 million | | Net (loss) in Conduit Pharmaceuticals | (0.18 million) | (3.86 million) | | Net (Loss) Income | 2.38 million | (3.74 million) | | Net Income (Loss) Attributable to Common Stockholders | 1.69 million | (5.76 million) | | Basic & Diluted EPS | 0.13 | (0.47) | Consolidated Statement of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (0.12 million) | (0.87 million) | | Net Cash Provided by Investing Activities | 13.55 million | 9.17 million | | Net Cash Used in Financing Activities | (9.51 million) | (7.65 million) | | Net Increase in Cash | 3.92 million | 0.65 million | Notes to Consolidated Financial Statements The notes detail accounting policies, real estate transactions, debt, equity, and segment performance, including Q1 2025 acquisitions, dispositions, and a stock repurchase program - In Q1 2025, the company acquired 12 model homes for approximately $4.3 million[72] - In Q1 2025, the company sold two commercial properties (Union Town Center and Research Parkway) for $17.0 million, recognizing a net gain of $4.2 million, and also sold 6 model homes for $2.8 million, with a gain of $0.2 million[75] - As of March 31, 2025, total mortgage notes payable amounted to $94.4 million, with the loan on the Dakota Center property in default and being marketed for sale to settle the non-recourse debt[86][87] - The company repurchased 12,844 shares of Series D Preferred Stock for approximately $195,000 in Q1 2025, with no Series A Common Stock repurchased during the quarter[113][202] - Subsequent to the quarter end, on April 8, 2025, the company commenced a self-tender offer to purchase up to 2,000,000 shares of its Series A common stock at $0.68 per share, with 2,144,116 shares accepted for purchase by May 5, 2025[114][144] Segment Net Operating Income (NOI) (Unaudited) | Segment | Q1 2025 NOI ($) | Q1 2024 NOI ($) | | :--- | :--- | :--- | | Retail | 0.16 million | 0.41 million | | Office/Industrial | 1.30 million | 1.42 million | | Model Homes | 0.87 million | 1.23 million | | Total NOI | 2.33 million | 3.06 million | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses operational results, liquidity, and capital resources, noting decreased revenues to $4.1 million in Q1 2025 and sufficient liquidity despite significant upcoming debt maturities Key Operational Results Comparison (Unaudited) | Metric | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Total Revenues | 4.1 million | 4.8 million | | Rental Operating Costs | 1.6 million | 1.6 million | | General & Administrative Expenses | 1.7 million | 2.1 million | | Interest Expense | 1.5 million | 1.5 million | - The decrease in revenue is primarily attributed to lower model home rental income and transaction fees, along with the sale of two commercial properties in February 2025[160] - General & Administrative expenses decreased by $0.4 million, partly due to lower consulting and legal fees compared to the prior year[163] - The company's liquidity position includes $12.0 million in cash and restricted cash as of March 31, 2025, which management believes will fund operations for at least the next 12 months, along with operating cash flow and refinancing ability[172][174] - Significant near-term debt maturities include approximately $27.8 million due in the remainder of 2025 and $18.4 million in 2026, which management plans to address through sales, refinancing, or extensions[173] - No dividends were declared for Series A Common Stock in Q1 2025 or Q1 2024, while dividends of approximately $0.6 million were paid to Series D Preferred Stockholders in Q1 2025[179] Item 3. Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Presidio Property Trust, Inc. is not required to provide the disclosures typically found under this item - The company is not required to provide this disclosure as it qualifies as a smaller reporting company[196] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[198] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[199] Part II. OTHER INFORMATION Item 1. Legal Proceedings The company reports that there are no material legal proceedings - None[200] Item 1A. Risk Factors The company did not report any new or materially changed risk factors from those previously disclosed in its Annual Report on Form 10-K - None[201] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section details the company's stock repurchase activity, including the repurchase of 12,844 Series D Preferred Stock shares for approximately $195,000 in Q1 2025 - In December 2024, the Board authorized a stock repurchase program for up to $6.0 million of Series A Common Stock and $4.0 million of Series D Preferred Stock, expiring in December 2025[202] Stock Repurchases for Q1 2025 | Security | Shares Purchased | Average Price Paid ($) | Total Cost ($) | | :--- | :--- | :--- | :--- | | Series A Common Stock | 0 | - | - | | Series D Preferred Stock | 12,844 | 15.18 | 194,971 | Item 3. Defaults Upon Senior Securities The company reports a maturity date default on a loan secured by the Dakota Center property, with a current default amount of approximately $9.1 million - The company received a notice of maturity date default on March 13, 2025, for a loan secured by the Dakota Center in Fargo, North Dakota[206] - The default amount is approximately $9.1 million, with a total arrearage of about $0.4 million, and the lender is also holding approximately $1.6 million in restricted cash sweep accounts[207] Item 4. Mine Safety Disclosures This item is not applicable to the company - None[208] Item 5. Other Information During the first quarter of 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[209] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, which include certifications by the CEO and CFO as required by the Sarbanes-Oxley Act of 2002, and the Inline XBRL financial data files - The report includes required exhibits such as CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL data files (Exhibits 101 and 104)[210]