Presidio Property Trust(SQFT) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2025 was $4,196,142, a decrease of 11.1% from $4,723,374 in Q3 2024[19] - Rental income for the nine months ended September 30, 2025, was $12,423,048, down 9.7% from $13,754,740 in the same period of 2024[19] - Net loss attributable to Presidio Property Trust, Inc. common stockholders for Q3 2025 was $1,862,027, compared to a net loss of $6,645,466 in Q3 2024[19] - The net loss for the nine months ended September 30, 2025, is $5,276,525, compared to a net income of $2,265,352 for the previous period[21] - Total revenues for the nine months ended September 30, 2025, were $12,700,066, with net operating income (NOI) of $8,090,256[125] - Adjusted NOI for the nine months ended September 30, 2025, was $8,473,575, compared to $12,398,589 for the same period in 2024[125] - The total costs and expenses for the same period were $17,064,187, leading to a net loss attributable to stockholders of $(4,302,021)[134] - The company reported a net income loss of $(1,290,848) for the three months ended September 30, 2025, highlighting challenges in profitability despite revenue generation[138] Assets and Liabilities - Total assets as of September 30, 2025, were $127,808,885, a decrease of 10.4% from $142,569,650 as of December 31, 2024[17] - Total liabilities decreased to $98,461,525 as of September 30, 2025, from $107,624,495 as of December 31, 2024, reflecting a reduction of 8.8%[17] - The company’s total stockholders' equity decreased to $29,347,360 as of September 30, 2025, from $34,945,155 as of December 31, 2024[17] - As of September 30, 2025, total equity stands at $29,347,360, with stockholders' equity of $21,098,683[21] - Cash and cash equivalents as of September 30, 2025, were $8,002,915, slightly down from $8,036,496 as of December 31, 2024[17] Real Estate Operations - The company reported a gain on sales of real estate of $300,975 for Q3 2025, compared to $361,151 in Q3 2024[19] - Impairment of goodwill and real estate assets for the nine months ended September 30, 2025, was $4,427,245, significantly higher than $893,939 in the same period of 2024[19] - The company sold two commercial properties, Union Town Center and Research Parkway, for approximately $15.9 million in February 2025, recognizing a net gain of approximately $4.5 million[77] - The company owns a diverse portfolio of real estate assets, including eight office buildings and one industrial property totaling approximately 758,175 rentable square feet[78] - The company recorded an impairment charge for model homes totaling $0.2 million for the nine months ended September 30, 2025, reflecting lower than expected sales prices[82] Cash Flow and Financing - Cash flows from operating activities showed a net cash used of $380,224 for the nine months ended September 30, 2025, compared to $658,434 in the prior year, reflecting better operational efficiency[25] - The company reported net cash provided by investing activities of $11,433,947 for the nine months ended September 30, 2025, up from $10,664,729 in 2024, driven by proceeds from sales of real estate[25] - Proceeds from mortgage notes payable, net of issuance costs, amounted to $18,942,396 in 2025, compared to $13,602,291 in 2024, indicating increased financing activity[25] - Future principal payments due on mortgage notes payable total approximately $10.4 million in the last two quarters of 2025 and $21.1 million in 2026[36] - The company has identified potential future sources of liquidity including existing cash, cash flows from operations, and refinancing of existing mortgages[35] Stockholder Information - Dividends paid to Series D preferred stockholders amount to $574,096 for the period ending March 31, 2025[21] - Total dividends paid to Series D Preferred stockholders during the three months ended September 30, 2025, were approximately $0.6 million, consistent with the same period in 2024[108] - The Company completed a secondary offering of 920,000 shares of Series D Preferred Stock, generating approximately $20.5 million in net proceeds[100] - Holders of Series D Preferred Stock are entitled to cumulative cash dividends at a rate of 9.375% per annum, equivalent to $2.34375 per share[102] - The Company executed a 1-for-10 reverse stock split effective May 19, 2025, adjusting all historical share amounts accordingly[110] Strategic Initiatives - The company has a strategy to maintain its REIT status by distributing at least 90% of its taxable income to stockholders[30] - The company expects to fund operations through at least the next twelve months with a combination of working capital and refinancing capabilities[37] - The Company is monitoring economic factors such as interest rate increases and geopolitical conflicts that could impact its commercial real estate portfolio[98] - The Company has entered into a cooperation agreement with an activist stockholder group, resulting in the appointment of a new director[95] Compliance and Governance - The company is in compliance with the Fixed Charge Coverage Ratio covenant of 1.10 to 1.00 as of September 30, 2025[88] - The Company has a charter restriction preventing any person from owning more than 9.8% of the outstanding shares of common stock, with exceptions granted to certain executives[109] - The company has not experienced any material litigation or environmental liabilities that would affect its financial condition[96][97]