PRESIDIO PROPERT(SQFTP) - 2025 Q1 - Quarterly Results

Forward-Looking Statements The company issues standard forward-looking statements, cautioning that actual results may differ due to risks detailed in its SEC filings Forward-Looking Statements Overview The company issues standard forward-looking statements, cautioning that actual results may differ due to risks detailed in its SEC filings - The presentation contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially from anticipations[3] - Forward-looking statements are based on historical performance and management's current plans, estimates, and expectations, and are subject to changes in circumstances and various factors described in the 'Risk Factors' section of the Annual and Quarterly Reports[4] Company Overview Presidio Property Trust, Inc. is an internally managed real estate company focused on commercial properties and model homes Corporate Information Presidio Property Trust, Inc., founded in 1999, is an internally managed real estate company focused on commercial properties and model homes Corporate Information | Metric | Detail | | :--- | :--- | | Headquarters | San Diego, CA | | Founded | 1999 | | Key Geographies | CA, CO, MD, ND & TX | | Employees | 14 | Portfolio Summary & Strategy The company's portfolio, valued at $117.4 million with $93.7 million in debt, focuses on commercial real estate and model homes Property Portfolio Breakdown | Property Type | Number of Properties | Square Footage | | :--- | :--- | :--- | | Office | 8 | 608,076 sqft. | | Retail | 1 | 10,500 sqft. | | Industrial | 1 | 150,099 sqft. | | Model Homes | 84 | 248,412 sqft | Portfolio Financial Metrics | Metric | Value | | :--- | :--- | | Book Value | $117.4 million | | Existing Secured Debt | $93.7 million | - Presidio is an internally managed real estate company focused on commercial real estate opportunities in often overlooked and regionally dominant markets, acquiring, owning, and managing office and industrial assets with attractive going-in cap rates[8] Portfolio Details The company's portfolio details include commercial properties and model homes, with recent sales and impairment charges impacting valuations Commercial Portfolio The commercial portfolio's book value decreased to $78.5 million due to property sales and impairment charges, with ongoing leasing efforts Commercial Property Values | Property Name | Location | March 31, 2025 Value (USD) | December 31, 2024 Value (USD) | | :--- | :--- | :--- | :--- | | Genesis Plaza | San Diego, CA | $7,273,346 | $7,363,571 | | Dakota Center | Fargo, ND | $8,154,951 | $8,154,951 | | Grand Pacific Center | Bismarck, ND | $8,380,905 | $8,413,926 | | Arapahoe Center | Centennial, CO | $9,173,855 | $9,298,534 | | Union Town Center | Colorado Springs, CO | — | $8,922,943 | | West Fargo Industrial | Fargo, ND | $6,531,693 | $6,599,953 | | 300 N.P. | Fargo, ND | $2,026,816 | $1,963,000 | | Research Parkway | Colorado Springs, CO | — | $2,220,284 | | One Park Center | Westminster, CO | $5,587,080 | $5,580,950 | | Shea Center II | Highlands Ranch, CO | $18,609,105 | $18,820,370 | | Mandolin | Houston, TX | $4,577,635 | $4,600,562 | | Baltimore | Baltimore, MD | $8,185,279 | $8,241,456 | | Commercial properties total | | $78,500,665 | $90,180,500 | - During February 2025, Union Town Center and Research Parkway were sold for a combined $16.95 million, resulting in a net gain of approximately $4.2 million[9] - The Dakota Center property was impaired by approximately $0.7 million as of September 30, 2024, and is now held for sale to settle its non-recourse loan[9] Model Homes Portfolio The model homes portfolio, comprising 84 homes and generating $3.56 million in annual rent, recorded a $26,943 impairment charge in Q1 2025 Model Homes Portfolio by State | State | No. of Properties | Aggregate Square Feet | % of Square Feet | Current Base Annual Rent (USD) | % 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% | - An impairment charge of $26,943 was recorded for model homes during the three months ended March 31, 2025, reflecting estimated sales prices[9] Consolidated Financial Statements The consolidated financial statements provide an overview of the company's balance sheets, statements of operations, and cash flows Consolidated Balance Sheets Total assets decreased to $135.4 million as of March 31, 2025, while total liabilities decreased to $98.9 million, and total equity increased to $36.6 million Consolidated Balance Sheet Summary | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | Change (USD) | | :--- | :--- | :--- | :--- | | Assets | | | | | Real estate assets, net | $117,366,015 | $127,596,500 | -$10,230,485 | | Real estate assets held for sale, net | $12,515,912 | $22,185,742 | -$9,669,830 | | Total Assets | $135,424,916 | $142,569,650 | -$7,144,734 | | Liabilities | | | | | Mortgage notes payable, total net | $93,742,547 | $102,094,094 | -$8,351,547 | | Total Liabilities | $98,864,550 | $107,624,495 | -$8,759,945 | | Equity | | | | | Total equity | $36,560,366 | $34,945,155 | +$1,615,211 | Consolidated Statements of Operations The company achieved a net income of $1.69 million in Q1 2025, a significant improvement from a $5.76 million net loss year-over-year, despite a 13.9% revenue decrease Consolidated Statements of Operations Summary | Metric | Q1 2025 (USD) | Q1 2024 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Total revenue | $4,125,184 | $4,790,061 | -13.9% | | Total costs and expenses | $4,545,667 | $5,094,593 | -10.8% | | Gain on sales of real estate, net | $4,453,968 | $2,018,095 | +120.7% | | Net loss in Conduit Pharmaceuticals marketable securities | ($176,658) | ($3,861,233) | +95.4% (reduction in loss) | | Net income (loss) attributable to Presidio Property Trust, Inc. common stockholders | $1,685,777 | ($5,763,695) | N/A (swing to profit) | | Basic & Diluted EPS | $0.13 | ($0.47) | N/A (swing to profit) | Consolidated Statements of Cash Flows Net cash used in operating activities decreased to $0.12 million in Q1 2025, while investing activities provided $13.55 million, leading to a $3.92 million increase in cash and equivalents Consolidated Statements of Cash Flows Summary | Cash Flow Activity | Q1 2025 (USD) | Q1 2024 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | ($118,905) | ($866,768) | +86.3% (reduction in use) | | Net cash provided by investing activities | $13,553,064 | $9,168,562 | +47.8% | | Net cash used in financing activities | ($9,513,802) | ($7,652,790) | -24.3% (increase in use) | | Net (decrease) increase in cash equivalents and restricted cash | $3,920,357 | $649,004 | +504.1% | | Cash, cash equivalents and restricted cash - end of period | $11,956,853 | $7,159,432 | +67.0% | - Proceeds from sales of real estate, net, significantly increased to $18.39 million in Q1 2025 from $12.64 million in Q1 2024, contributing to the rise in investing cash flows[16] - Repayment of mortgage notes payable increased to $11.38 million in Q1 2025 from $7.86 million in Q1 2024[16] Non-GAAP Financial Measures This section provides reconciliations for non-GAAP financial measures, including EBITDAre, FFO, and Core FFO EBITDAre Reconciliation EBITDAre for Q1 2025 was $0.16 million, a significant improvement from a negative $0.88 million year-over-year, driven by real estate sales and reduced marketable securities losses EBITDAre Reconciliation Summary | Metric | Q1 2025 (USD) | Q1 2024 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Net income (loss) attributable to Presidio Property Trust, Inc. common stockholders | $1,685,777 | ($5,763,695) | N/A (swing to profit) | | Net gain on sale of real estate | ($4,453,968) | ($2,018,095) | -120.7% (larger gain) | | Net loss on marketable securities | $176,658 | $3,861,793 | -95.4% (smaller loss) | | EBITDAre | $163,553 | ($879,905) | N/A (swing to positive) | FFO and Core FFO Reconciliation FFO for Q1 2025 was a negative $1.21 million, and Core FFO was a negative $0.98 million, both worsening year-over-year, with Core FFO per share at ($0.076) FFO and Core FFO Reconciliation Summary | Metric | Q1 2025 (USD) | Q1 2024 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Net income (loss) attributable to Presidio Property Trust, Inc. common stockholders | $1,685,777 | ($5,763,695) | N/A (swing to profit) | | Net gain on sale of real estate assets | ($4,453,968) | ($2,018,095) | -120.7% (larger gain) | | FFO | ($1,209,945) | ($971,367) | -24.6% (larger loss) | | Core FFO | ($980,442) | ($429,445) | -128.3% (larger loss) | | Core FFO / Wgt Avg Share | ($0.076) | ($0.035) | -117.1% (larger loss per share) | Segment Data Segment data provides a breakdown of operating performance (NOI) and assets across different property types Segment Operating Performance (NOI) Total revenues decreased to $4.13 million in Q1 2025, with Net Operating Income (NOI) declining across all segments, notably Retail NOI by 60.6% Segment Operating Performance (NOI) Summary | Metric | Q1 2025 (USD) | Q1 2024 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | | | | | Retail | $263,278 | $553,389 | -52.4% | | Office/Industrial | $2,916,392 | $2,961,520 | -1.5% | | Model Homes | $913,767 | $1,268,951 | -28.0% | | Net Operating Income (NOI) | | | | | Retail | $162,710 | $413,435 | -60.6% | | Office/Industrial | $1,298,027 | $1,415,957 | -8.3% | | Model Homes | $865,610 | $1,227,721 | -29.5% | | Adjusted NOI | | | | | Retail | $162,710 | $413,435 | -60.6% | | Office/Industrial | $1,298,027 | $1,415,957 | -8.3% | | Model Homes | $1,079,566 | $3,150,268 | -65.8% | | Total Adjusted NOI | $2,726,498 | $5,149,031 | -47.0% | - Gain on Sale - Model Homes decreased significantly from $2,018,095 in Q1 2024 to $240,899 in Q1 2025, impacting Adjusted NOI[20] Segment Assets Total assets for reportable segments decreased to $119.29 million as of March 31, 2025, with Retail Properties experiencing the most significant decline Segment Assets Summary | Segment | March 31, 2025 Total Assets (USD) | December 31, 2024 Total Assets (USD) | Change (USD) | | :--- | :--- | :--- | :--- | | Office/Industrial Properties | $74,742,379 | $76,292,662 | -$1,550,283 | | Model Home Properties | $39,778,198 | $38,166,964 | +$1,611,234 | | Retail Properties | $4,772,995 | $16,673,605 | -$11,900,610 | | Total assets for reportable segments | $119,293,572 | $131,133,231 | -$11,839,659 | Non-GAAP Measurements Definitions This section provides definitions for non-GAAP financial measures used by the company Non-GAAP Measurements Definitions Overview This section defines non-GAAP financial measures, including EBITDAre, FFO, and Core FFO, along with caveats regarding their utility and comparability - EBITDAre is defined by NAREIT as earnings before interest, taxes, depreciation, and amortization, gain or loss on disposal of depreciated assets, and impairment write-offs[23] - FFO is defined as net income or loss (GAAP), excluding gains/losses from property sales, plus depreciation and amortization, and impairment charges, with adjustments for non-consolidated REITs[24] - Core FFO is calculated by adjusting FFO for certain non-core items such as acquisition costs, loss on early extinguishment of debt, changes in fair value, non-cash warrant dividends, other non-recurring expenses, and amortization of stock-based compensation[26] - The utility of FFO as a measure of performance is limited because it excludes depreciation, amortization, and changes in property value, which have real economic effects. FFO and Core FFO may not be comparable to those of other REITs[25][27]