Presidio Property Trust(SQFT) - 2021 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Core funds from operations (FFO) increased to $2.5 million in 2021 from $1.5 million in 2020, reflecting a substantial improvement in cash flow [14] - Interest expense in 2021 was 45% lower than in 2020, contributing to the increase in core FFO [14] - The company collected slightly more than 100% of what was billed to tenants in 2021, indicating strong rent collection performance [15] Business Line Data and Key Metrics Changes - The company executed 50 leases covering approximately 217,000 square feet in 2021, with over a third being new tenants [18] - The Model Home division sold 44 homes for about $21 million, recognizing a gain of approximately $3 million [23] Market Data and Key Metrics Changes - The company sold three Colorado office properties and one California retail property, totaling $33 million in transaction volume [20] - The acquisition of a 30,000 square foot building leased to the Bloomberg School of Public Health was completed, indicating a strategic investment in a mission-critical facility [21] Company Strategy and Development Direction - The company aims to focus on yield-driven, stable long-term lease properties with minimal capital expense exposure [28] - Plans to continuously grow through smart acquisitions and to raise more capital when market conditions are favorable [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio, citing that only 13 tenants requested rent assistance during the last lockdown [30] - The company believes that there are better investment returns outside of California, having sold all properties in the state except for its headquarters [10] Other Important Information - The company sponsored a SPAC, Murphy Canyon Acquisition, to potentially bring a real estate-related company public, which could create value for shareholders [12] - Shareholders received one warrant per share, allowing them to purchase stock at $7 per share over the next five years [11] Q&A Session Summary Question: How much will you make from your shares in the SPAC if it is successful? - The potential return could be as much as 30% to 40% of total equity, depending on negotiations with the target company [27] Question: What kinds of properties specifically are you looking at for new acquisitions? - The focus is on yield-driven, stable long-term lease properties across diversified property types, including industrial, office, and retail [28] Question: If there were to be another lockdown in 2022, how much of an effect do you think it would have on the Presidio Property portfolio? - Historical data suggests that the company managed well during the last lockdown, and a similar situation is expected if another lockdown occurs [30] Question: Do you have plans to raise more capital and what can we expect? - The company is always looking at capital markets and will raise more capital when the time is right and markets are favorable [32]