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

Company Overview Presidio Property Trust is an internally managed real estate company focused on commercial and model home properties with a total book value of $117.4 million Corporate Information and Portfolio Summary Presidio Property Trust is an internally managed real estate company with a portfolio of commercial and model home properties valued at $117.4 million - Presidio is an internally managed real estate company specializing in commercial real estate in regionally dominant markets, acquiring office and industrial assets[8] Portfolio Summary (as of March 31, 2025) | Property Type | Count / Square Footage | | :--- | :--- | | Office | 8 properties / 608,076 sqft. | | Retail | 1 property / 10,500 sqft. | | Industrial | 1 property / 150,099 sqft. | | Model Homes | 84 homes / 248,412 sqft | Portfolio Value & Debt | Metric | Value | | :--- | :--- | | Book Value | $117.4 million | | Existing Secured Debt | $93.7 million | Portfolio Details The company's commercial and model home portfolios are detailed, covering recent asset sales, value changes, and leasing activities Commercial Portfolio The commercial portfolio's net book value decreased to $78.5 million due to property sales that generated a $4.2 million net gain Commercial Portfolio Value Change | Date | Net Real Estate Assets Value | | :--- | :--- | | March 31, 2025 | $78,500,665 | | December 31, 2024 | $90,180,500 | - In February 2025, the company sold Union Town Center and Research Parkway for a combined $16.95 million, realizing a net gain of approximately $4.2 million[9] - The Dakota Center property is classified as held for sale to settle its non-recourse loan that matured in July 2024; an impairment charge of $0.7 million was recorded in Q3 2024[9] - The company is actively working to lease the remaining 46% of space at Shea Center II, and approximately 54% of the space has since been leased to other tenants[9] Model Homes Portfolio The model homes portfolio comprises 84 properties generating $3.56 million in annual rent, with a heavy concentration in Texas Model Homes Portfolio Summary | State | No. of Properties | Aggregate Square Feet | % of Square Feet | Current Base Annual Rent | % of Aggregate Annual Rent | | :--- | :--- | :--- | :--- | :--- | :--- | | Alabama | 9 | 20,804 | 8.4% | $309,456 | 8.7% | | Arizona | 2 | 6,822 | 2.7% | $149,196 | 4.2% | | Florida | 2 | 5,337 | 2.2% | $89,844 | 2.5% | | Texas | 71 | 215,449 | 86.7% | $3,007,512 | 84.6% | | Total | 84 | 248,412 | 100.0% | $3,556,008 | 100.0% | Consolidated Financial Statements This section presents the company's consolidated balance sheet, income statement, and cash flow statement for the first quarter of 2025 Consolidated Balance Sheets Total assets and liabilities decreased to $135.4 million and $98.9 million respectively, while total equity increased to $36.6 million Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Real estate assets, net | $117.4 | $127.6 | | Total Assets | $135.4 | $142.6 | | Mortgage notes payable, total net | $93.7 | $102.1 | | Total Liabilities | $98.9 | $107.6 | | Total Equity | $36.6 | $34.9 | - Real estate assets held for sale, net, decreased significantly from $22.2 million on December 31, 2024, to $12.5 million on March 31, 2025, reflecting property sales during the quarter[12] - Cash, cash equivalents and restricted cash increased from $8.0 million to $12.0 million during the first quarter of 2025[12] Consolidated Statements of Operations The company reported a Q1 2025 net income of $2.38 million, a significant turnaround from a loss in Q1 2024, driven by gains on real estate sales Q1 Performance Comparison (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $4,125,184 | $4,790,061 | | Gain on sales of real estate, net | $4,453,968 | $2,018,095 | | Net (Loss) Income | $2,376,915 | ($3,737,795) | | Net Income (Loss) to Common Stockholders | $1,685,777 | ($5,763,695) | | Basic & Diluted EPS | $0.13 | ($0.47) | - The shift to profitability in Q1 2025 was primarily due to a $4.45 million gain on real estate sales, which more than compensated for lower rental income and a $0.18 million net loss on marketable securities[14] - General and administrative expenses decreased to $1.66 million in Q1 2025 from $2.08 million in Q1 2024[14] Consolidated Statements of Cash Flows Cash increased by $3.92 million in Q1 2025, driven by a $13.55 million inflow from investing activities, primarily real estate sales Q1 Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($118,905) | ($866,768) | | Net cash provided by investing activities | $13,553,064 | $9,168,562 | | Net cash used in financing activities | ($9,513,802) | ($7,652,790) | | Net increase in cash | $3,920,357 | $649,004 | - Net cash from investing activities was primarily driven by $18.4 million in proceeds from real estate sales, partially offset by $4.3 million in real estate acquisitions[16] - Financing activities included $11.4 million in mortgage repayments and $0.58 million in dividends paid to Series D Preferred Stockholders[16] Non-GAAP Financial Measures & Reconciliations This section reconciles non-GAAP metrics like EBITDAre and FFO and provides financial data by operating segment EBITDAre Reconciliation EBITDAre improved significantly to $163,553 in Q1 2025 from a loss of ($879,905) in Q1 2024, indicating stronger operational performance EBITDAre Comparison (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net (loss) income to common stockholders | $1,685,777 | ($5,763,695) | | Net gain on sale of real estate | ($4,453,968) | ($2,018,095) | | EBITDAre | $163,553 | ($879,905) | FFO and Core FFO Reconciliation In Q1 2025, FFO declined to ($1.21 million) and Core FFO worsened to ($0.98 million) compared to the prior year FFO and Core FFO Comparison (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | FFO | ($1,209,945) | ($971,367) | | Core FFO | ($980,442) | ($429,445) | | Core FFO / Wgt Avg Share | ($0.076) | ($0.035) | Segment Data Q1 2025 Net Operating Income (NOI) was led by the Office/Industrial segment, though total NOI and segment assets declined year-over-year Net Operating Income (NOI) by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 NOI | Q1 2024 NOI | | :--- | :--- | :--- | | Retail | $162,710 | $413,435 | | Office/Industrial | $1,298,027 | $1,415,957 | | Model Homes | $865,610 | $1,227,721 | | Total NOI | $2,512,542 | $3,226,484 | Assets by Reportable Segment | Segment | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Office/Industrial Properties | $74,742,379 | $76,292,662 | | Model Home Properties | $39,778,198 | $38,166,964 | | Retail Properties | $4,772,995 | $16,673,605 | | Total Segment Assets | $119,293,572 | $131,133,231 | Definitions – Non-GAAP Measurements This section defines key non-GAAP financial measures used in the report, such as EBITDAre, FFO, and Core FFO Definitions This section defines the non-GAAP measures EBITDAre, Funds from Operations (FFO), and Core Funds from Operations (Core FFO) - EBITDAre: Defined by NAREIT as earnings before interest, taxes, depreciation, amortization, gain/loss on asset disposal, and impairment write-offs[23] - Funds from Operations (FFO): Defined as net income excluding property sales gains/losses, plus depreciation and amortization, and impairment charges[24] - Core Funds from Operations (Core FFO): Calculated by adjusting FFO for non-core items such as acquisition costs, loss on debt extinguishment, and stock-based compensation amortization[26]