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] - The company reported a net loss of $3,955,918 for the nine months ended September 30, 2025, compared to a net loss of $20,820,853 for the same period in 2024[19] - The company recorded a net loss attributable to stockholders of $4,302,021, primarily driven by significant impairments and interest expenses[134] - 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] 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[17] - Mortgage notes payable, total net, decreased to $93,719,413 as of September 30, 2025, from $102,094,094 as of December 31, 2024[17] - The company has accumulated losses of $165,400,881 as of September 30, 2025[21] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $380,224 for the nine months ended September 30, 2025, compared to $658,434 in the prior year, reflecting a reduction in cash outflow[25] - The company reported net cash provided by investing activities of $11,433,947 for the nine months ended September 30, 2025, compared to $10,664,729 in 2024, showing an increase in cash inflow from investments[25] - The company raised $18,942,396 from mortgage notes payable, net of issuance costs, for the nine months ended September 30, 2025, compared to $13,602,291 in 2024, reflecting increased financing activity[25] - Total cash, cash equivalents, and restricted cash at the end of the period was $8,002,915, a decrease from $8,036,496 at the beginning of the period[25] Impairments and Expenses - The company incurred impairment of goodwill and real estate assets amounting to $4,427,245 for the nine months ended September 30, 2025[19] - General and administrative expenses were significant at $4,335,697, indicating a focus on operational overhead[134] - The company recognized non-cash impairment charges of approximately $4.4 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively, related to commercial properties and model homes[54] Stock and Dividends - Dividends paid to Series D preferred stockholders amount to $574,096 for the current period[21] - The company declared and paid approximately $1.7 million in cash dividends on Series D Preferred Stock for both the nine months ended September 30, 2025, and 2024[116] - 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] Real Estate Operations - The company reported a gain on sales of real estate of $5,078,302 for the nine months ended September 30, 2025, compared to $3,191,149 for the same period in 2024[19] - The company recognized a net gain of approximately $4.5 million from the sale of Union Town Center and Research Parkway for approximately $15.9 million, net of selling costs[77] - The company sold all remaining shares of Conduit Pharmaceuticals for a total of $13,990 during the nine months ended September 30, 2025[57] Future Outlook - The company anticipates future liquidity sources to include cash flows from operations, refinancing existing mortgages, and potential real estate sales[35] - 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 is monitoring economic factors such as interest rate increases and geopolitical conflicts that could impact its commercial real estate portfolio[98] 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 entered into a cooperation agreement with an activist stockholder group, resulting in the appointment of a new director[95] - The Board of Directors authorized a stock repurchase program of up to $6.0 million for Series A Common Stock and $4.0 million for Series D Preferred Stock, expiring in December 2025[114]
PRESIDIO PROPERT(SQFTP) - 2025 Q3 - Quarterly Report