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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): August 14, 2023
Presidio
Property Trust, Inc.
(Exact
name of registrant as specified in its charter)
Maryland |
|
001-34049 |
|
33-0841255 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
4995
Murphy Canyon Road, Suite 300
San
Diego, California 92123
(Address
of principal executive offices, including zip code)
Registrant’s
telephone number, including area code: (760) 471-8536
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
|
|
|
|
|
Series
A Common Stock, $0.01 par value per share |
|
SQFT |
|
The
Nasdaq Stock Market LLC |
|
|
|
|
|
9.375%
Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share |
|
SQFTP |
|
The
Nasdaq Stock Market LLC |
|
|
|
|
|
Series
A Common Stock Purchase Warrants to Purchase Shares of Common Stock |
|
SQFTW |
|
The
Nasdaq Stock Market LLC |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02 |
Results
of Operations and Financial Condition |
Press
Release
On
August 14, 2023, Presidio Property Trust, Inc. (the “Company”) issued a press release announcing its financial results for
the quarter ended June 30, 2023, and made the press release available on its website, www.PresidioPT.com. A copy of the press release
is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
The
Company also made available on its website a financial supplement containing financial data of the Company (“Supplemental Financial
Information”) for the quarter ended March 31, 2023, and such Supplemental Financial Information is attached hereto as Exhibit 99.2
and is incorporated by reference herein.
The
information in this Item 2.02 of this Current Report on Form 8-K, including the information contained in the exhibits, shall not be deemed
“filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any registration statement or
other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Item
7.01 |
Regulation
FD Disclosure. |
The
Supplemental Financial Information furnished by the Company and posted to its website as described above under Item 2.02 is hereby incorporated
by reference into this Item 7.01.
Item
9.01 |
Financial
Statements and Exhibits. |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date:
August 15, 2023 |
PRESIDIO
PROPERTY TRUST, INC. |
|
|
|
By: |
/s/
Adam Sragovicz |
|
Name: |
Adam
Sragovicz |
|
Title: |
Chief
Financial Officer |
Exhibit
99.1
Presidio
Property Trust, Inc. Announces Earnings for
the
Quarter Ended June 30, 2023
San
Diego, California, August 14, 2023 – Presidio Property Trust, Inc. (Nasdaq: SQFT, SQFTP) (the “Company”), an internally
managed, diversified real estate investment trust (“REIT”), today reported earnings for its quarter ended June 30, 2023.
Quarter
Ended June 30, 2023, Financial Results
Net
loss attributable to the Company’s common stockholders for the three months ended June 30, 2023, was approximately $1,831,889,
or $(0.15) per basic and diluted share, compared to a net loss of approximately $830,212, or $(0.07) per basic and diluted share for
the three months ended June 30, 2022. The change in net income attributable to the Company’s common stockholders was a result of:
|
● |
An
increase in G&A expenses of approximately $0.6 million due mainly to filing, accounting, and consulting costs related to the
SPAC in Q2 2023. |
|
|
|
|
● |
An
increase in interest expense related to mortgage notes payable of approximately $0.3 million in Q2 2023 compared to Q2 2022. This
is due to the acquisition of real estate assets, most notably an increase in the number of homes in the model home portfolio. The
Company owned 82 model homes as of June 30, 2022, and increased the holdings to 105 model homes as of June 30, 2023. Additionally,
the interest rates on mortgages for the model home portfolio generally increased from a weighted average interest rate of 3.77% to
5.24% as of June 30, 2022, and June 30, 2023, respectively. |
|
|
|
|
● |
The
increase in G&A and interest expense is partially offset by an increase in rental revenue and fee and other income of approximately
$0.2 million in Q2 2023 compared to Q2 2022. This increase in rental income is due largely to the Company having a larger model home
portfolio with 23 more homes in Q2 2023 versus Q2 2022, with no major changes to the commercial portfolio. |
|
|
|
|
● |
Noncontrolling
interest payments were approximately $0.4 million larger in Q2 2023 compared to Q2 2022. This is due to the Company selling more
homes in the joint ventures. In the JV’s alone, the Company sold 7 homes for a gain of $1.1 million and 3 homes for a gain
of $0.7 million in Q2 2023 and Q2 2022 respectively. |
FFO
(non-GAAP) decreased by approximately $0.4 million to approximately $(489,404) from $(46,023) for the three months ended June 30, 2023,
and June 30, 2022, respectively. A reconciliation of FFO to net income, the most directly comparable GAAP financial measure, is attached
to this press release. However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s
properties that result from use or market conditions, each of which have real economic effects and could materially impact the Company’s
results from operations, the utility of FFO as a measure of the Company’s performance is limited.
We
believe Core FFO (non-GAAP) provides a useful metric in comparing operations between reporting periods and in assessing the sustainability
of our ongoing operating performance. Core FFO decreased by about $0.4 million, from approximately $234,958 in the three months ended
June 30, 2022, to approximately $(209,748) in the three months ended June 30, 2023.
Acquisitions
and Dispositions for the first two quarters of 2023
|
● |
The
Company acquired 23 model home properties and leased them back to the homebuilders under triple net leases during the six months
ended June 30, 2023. The purchase price for these properties was $12.9 million. The purchase price consisted of cash payments of
$3.9 million and mortgage notes of $9.0 million. |
|
|
|
|
● |
The
Company sold 10 model home properties for approximately $5.0 million and recognized a gain of approximately $1.5 million. |
Dividends
paid during the first two quarters of 2023:
|
● |
During
the first quarter and second quarter of 2023, the Company paid dividends to Common shareholders of $0.022 and $0.023 per share, respectively,
for a total of $0.045 per share. |
|
|
|
|
● |
During
the first six months of 2023, the Company paid six monthly dividends, which totaled $1.17186 per share to shareholders of Series
D preferred stock. |
About
Presidio Property Trust
Presidio
is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office,
industrial, and retail properties. Presidio’s model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin,
and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland,
North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through
economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete
geographic areas, including those that have developed as a result of COVID-19. Presidio is also the sponsor of the Special Purpose Acquisition
Company (SPAC) Murphy Canyon Acquisition Corp. (NASDAQ: MURF), which currently holds approximately $23.3 million in trust. Murphy Canyon
Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization, or similar business combination with one or more businesses. The SPAC has entered into a definitive business
combination agreement with Conduit Pharmaceuticals Limited (Conduit). A full description of the terms of the proposed business combination,
which is expected to close in the second half of 2023 subject to the satisfaction of multiple conditions, including approval of the business
combination by the SPAC’s shareholders, is provided in the registration statement on Form S-4 that the SPAC has filed with the
SEC. For more information on Presidio, please visit the Company’s website at https://www.PresidioPT.com.
Definitions
Non-GAAP
Financial Measures
Funds
from Operations (“FFO”) – The Company evaluates performance based on Funds From Operations, which we refer to as
FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity
holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of
property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs
that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles
and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses
from, and, to include the proportionate share of FFO from, non-consolidated REITs.
However,
because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result
from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from
operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate
FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to
other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s
performance.
Core
Funds from Operations (“Core FFO”) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for
certain other non-core items. We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt,
changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant dividends and the amortization
of stock-based compensation.
We
believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our
ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s
Core FFO may not be comparable to such other REITs’ Core FFO.
Cautionary
Note Regarding Forward-Looking Statements
This
press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding
management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified
by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,”
“may,” “will,” “should” and “could.” Because such statements include risks, uncertainties
and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking
statements also include statements relating to the closing of the business combination with Conduit within a certain timeframe or at
all. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed
to occur. Except as required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statement
to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors
should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please
refer to the “ Risk Factors” section of the Company’s documents filed with the SEC, copies of which are available on
the SEC’s website, www.sec.gov.
Investor
Relations Contact:
Presidio
Property Trust, Inc.
Lowell
Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone:
(760) 471-8536 x1244
Presidio
Property Trust, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
| |
June 30, | | |
December 31, | |
| |
2023 | | |
2022 | |
| |
(Unaudited) | | |
| |
ASSETS | |
| | | |
| | |
Real estate assets and lease intangibles: | |
| | | |
| | |
Land | |
$ | 20,803,978 | | |
$ | 19,189,386 | |
Buildings and improvements | |
| 135,185,098 | | |
| 125,979,374 | |
Tenant improvements | |
| 14,426,125 | | |
| 13,861,839 | |
Lease intangibles | |
| 4,110,139 | | |
| 4,110,139 | |
Real estate assets and lease intangibles held for investment, cost | |
| 174,525,340 | | |
| 163,140,738 | |
Accumulated depreciation and amortization | |
| (36,841,025 | ) | |
| (34,644,511 | ) |
Real estate assets and lease intangibles held for investment, net | |
| 137,684,315 | | |
| 128,496,227 | |
Real estate assets held for sale, net | |
| 1,196,336 | | |
| 2,016,003 | |
Real estate assets, net | |
| 138,880,651 | | |
| 130,512,230 | |
Other assets: | |
| | | |
| | |
Cash, cash equivalents and restricted cash | |
| 8,700,791 | | |
| 16,516,725 | |
Deferred leasing costs, net | |
| 1,546,034 | | |
| 1,516,835 | |
Goodwill | |
| 2,423,000 | | |
| 2,423,000 | |
Other assets, net (see Note 6) | |
| 4,161,325 | | |
| 3,511,681 | |
Total other assets | |
| 16,831,150 | | |
| 23,968,241 | |
Investments held in Trust (see Notes 2 & 9) | |
| 23,339,887 | | |
| 136,871,183 | |
TOTAL ASSETS | |
$ | 179,051,688 | | |
$ | 291,351,654 | |
LIABILITIES AND EQUITY | |
| | | |
| | |
Liabilities: | |
| | | |
| | |
Mortgage notes payable, net | |
$ | 102,856,817 | | |
$ | 95,899,176 | |
Mortgage notes payable related to properties held for sale, net | |
| 482,142 | | |
| 999,523 | |
Mortgage notes payable, total net | |
| 103,338,959 | | |
| 96,898,699 | |
Accounts payable and accrued liabilities | |
| 4,373,983 | | |
| 4,028,564 | |
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 9) | |
| 6,655,685 | | |
| 5,046,725 | |
Accrued real estate taxes | |
| 977,658 | | |
| 1,879,875 | |
Dividends payable preferred stock | |
| 177,145 | | |
| 178,511 | |
Lease liability, net | |
| 31,799 | | |
| 46,833 | |
Below-market leases, net | |
| 15,753 | | |
| 18,240 | |
Total liabilities | |
| 115,570,982 | | |
| 108,097,447 | |
Commitments and contingencies (Note 2 & 9): | |
| | | |
| | |
SPAC Class A common stock subject to possible redemption; 2,187,728 as of June 30, 2023 and 13,225,000 shares as of December 31, 2022 (at $10.45 per share), net of issuance cost of approximately $6,400,000 | |
| 16,748,849 | | |
| 130,411,135 | |
Equity: | |
| | | |
| | |
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 901,375 shares issued and outstanding (liquidation preference $25.00 per share) as of June 30, 2023 and 913,987 shares issued and outstanding as of December 31, 2022 | |
| 9,014 | | |
| 9,140 | |
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,849,710 shares and 11,807,893 shares were issued and outstanding at June 30, 2023 and December 31, 2022, respectively | |
| 118,497 | | |
| 118,079 | |
Additional paid-in capital | |
| 180,365,055 | | |
| 182,044,157 | |
Dividends and accumulated losses | |
| (142,294,778 | ) | |
| (138,341,750 | ) |
Total stockholders’ equity before noncontrolling interest | |
| 38,197,788 | | |
| 43,829,626 | |
Noncontrolling interest | |
| 8,534,069 | | |
| 9,013,446 | |
Total equity | |
| 46,731,857 | | |
| 52,843,072 | |
TOTAL LIABILITIES AND EQUITY | |
$ | 179,051,688 | | |
$ | 291,351,654 | |
Presidio
Property Trust, Inc. and Subsidiaries
Condensed
Consolidated Statements of Operations
(Unaudited)
| |
For the Three Months Ended June 30, | | |
For the Six Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Rental income | |
$ | 4,329,588 | | |
$ | 4,188,076 | | |
$ | 8,271,641 | | |
$ | 8,640,394 | |
Fees and other income | |
| 214,284 | | |
| 132,784 | | |
| 393,723 | | |
| 253,607 | |
Total revenue | |
| 4,543,872 | | |
| 4,320,860 | | |
| 8,665,364 | | |
| 8,894,001 | |
Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
Rental operating costs | |
| 1,399,159 | | |
| 1,348,083 | | |
| 2,974,149 | | |
| 2,931,556 | |
General and administrative | |
| 1,813,184 | | |
| 1,214,005 | | |
| 3,777,804 | | |
| 2,797,696 | |
Depreciation and amortization | |
| 1,368,829 | | |
| 1,316,193 | | |
| 2,702,403 | | |
| 2,655,418 | |
Total costs and expenses | |
| 4,581,172 | | |
| 3,878,281 | | |
| 9,454,356 | | |
| 8,384,670 | |
Other income (expense): | |
| | | |
| | | |
| | | |
| | |
Interest expense - mortgage notes | |
| (1,336,415 | ) | |
| (1,085,860 | ) | |
| (2,204,182 | ) | |
| (2,103,573 | ) |
Interest and other income, net | |
| 398,085 | | |
| 93,128 | | |
| 1,140,201 | | |
| 166,733 | |
Gain on sales of real estate, net | |
| 1,119,952 | | |
| 1,227,484 | | |
| 1,537,289 | | |
| 2,750,269 | |
Income tax expense | |
| (349,074 | ) | |
| (259,285 | ) | |
| (497,527 | ) | |
| (524,524 | ) |
Total other income (expense), net | |
| (167,452 | ) | |
| (24,533 | ) | |
| (24,219 | ) | |
| 288,905 | |
Net income (loss) | |
| (204,752 | ) | |
| 418,046 | | |
| (813,211 | ) | |
| 798,236 | |
Less: Income attributable to noncontrolling interests | |
| (1,094,852 | ) | |
| (709,202 | ) | |
| (1,481,933 | ) | |
| (1,917,878 | ) |
Net loss attributable to Presidio Property Trust, Inc. stockholders | |
$ | (1,299,604 | ) | |
$ | (291,156 | ) | |
$ | (2,295,144 | ) | |
$ | (1,119,642 | ) |
Less: Preferred Stock Series D dividends | |
| (532,285 | ) | |
| (539,056 | ) | |
| (1,067,733 | ) | |
| (1,078,111 | ) |
Less: Series A Warrant dividend | |
| — | | |
| — | | |
| — | | |
| (2,456,512 | ) |
Net loss attributable to Presidio Property Trust, Inc. common stockholders | |
$ | (1,831,889 | ) | |
$ | (830,212 | ) | |
$ | (3,362,877 | ) | |
$ | (4,654,265 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: | |
| | | |
| | | |
| | | |
| | |
Basic & Diluted | |
$ | (0.15 | ) | |
$ | (0.07 | ) | |
$ | (0.28 | ) | |
$ | (0.39 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding - basic & diluted | |
| 11,839,359 | | |
| 11,799,689 | | |
| 11,837,020 | | |
| 11,786,741 | |
FFO
and Core FFO Reconciliation
| |
For the Three Months Ended | | |
For the Six Months Ended | |
| |
6/30/2023 | | |
6/30/2022 | | |
6/30/2023 | | |
6/30/2022 | |
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders | |
$ | (1,831,889 | ) | |
$ | (830,212 | ) | |
$ | (3,362,877 | ) | |
$ | (4,654,265 | ) |
Adjustments: | |
| | | |
| | | |
| | | |
| | |
Income attributable to noncontrolling interests | |
| 1,094,852 | | |
| 709,202 | | |
| 1,481,933 | | |
| 1,917,878 | |
Depreciation and amortization | |
| 1,368,829 | | |
| 1,316,193 | | |
| 2,702,403 | | |
| 2,655,418 | |
Amortization of above and below market leases, net | |
| (1,244 | ) | |
| (13,722 | ) | |
| (2,487 | ) | |
| (27,445 | ) |
Loss (gain) on sale of real estate assets, net | |
| (1,119,952 | ) | |
| (1,227,484 | ) | |
| (1,537,289 | ) | |
| (2,750,269 | ) |
FFO | |
$ | (489,404 | ) | |
$ | (46,023 | ) | |
$ | (718,317 | ) | |
$ | (2,858,683 | ) |
Restricted stock compensation | |
| 279,656 | | |
| 280,981 | | |
| 540,501 | | |
| 568,700 | |
Series A Warrant dividend | |
| - | | |
| - | | |
| - | | |
| 2,456,512 | |
Core FFO | |
$ | (209,748 | ) | |
$ | 234,958 | | |
$ | (177,816 | ) | |
$ | 166,529 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding - basic and diluted | |
| 11,839,359 | | |
| 11,799,689 | | |
| 11,837,020 | | |
| 11,786,741 | |
| |
| | | |
| | | |
| | | |
| | |
Core FFO / Wgt Avg Share | |
$ | (0.018 | ) | |
$ | 0.020 | | |
$ | (0.015 | ) | |
$ | 0.014 | |
Exhibit
99.2
SUPPLEMENTAL
FINANCIAL INFORMATION
As
of June 30, 2023
FORWARD-LOOKING
STATEMENTS |
|
This
presentation contains “forward-looking statements” within the meaning of the federal securities laws that involve risks and
uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated
in such forward-looking statements as a result of certain factors, including those set forth in the Quarterly Report on Form 10-Q. Forward-looking
statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations,
margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, dividends, results of operations
and other financial and operating information. When used in this presentation, the words “will,” “may,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “should,” “project,”
“plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements
contain such identifying words.
The
forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates
and expectations in light of information currently available to it and are subject to uncertainty and changes in circumstances. There
can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially
from these expectations due to the factors, risks and uncertainties described in the Annual Report on Form 10-K, as filed March 28, 2023
(“Annual Report”) and the Company’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof (“Quarterly
Report”), changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors
described in the “Risk Factors” section of the Annual Report and the Quarterly Report, many of which are beyond our control.
Should one or more of these risks or uncertainties materialize or should any of our assumptions prove to be incorrect, our actual results
may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should
not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks
only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time,
and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether
as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.
COMPANY
OVERVIEW |
|
|
|
|
Corporate
Information |
|
|
|
Headquarters |
San
Diego, CA |
|
|
|
Founded |
1999 |
|
|
|
Key
Geographies |
CA,
CO, MD, ND & TX |
|
|
|
Employees |
17 |
|
|
|
|
|
● |
Presidio
Property Trust, Inc. (“Presidio” or the “Company”) was founded in 1999 as NetREIT |
|
|
|
|
|
|
|
|
● |
Presidio
is an internally managed real estate company focused on commercial real estate opportunities in often overlooked and regionally dominant
markets |
|
Portfolio
Summary (Number / Square Footage) |
|
|
|
Office |
8
properties / 606,724 sq. ft. |
● |
The
Company acquires, owns, and manages office and industrial real estate assets in markets with strong demographic and economic drivers
with attractive going-in cap rates |
|
Retail |
3
properties / 65,242 sq. ft. |
|
|
|
Industrial |
1
property / 150,099 sq. ft. |
● |
Presidio’s
commercial portfolio currently includes 12 commercial properties with a book value of approximately $92 million |
|
Model
Homes (1) |
5
funds / 105 homes |
|
|
|
|
|
● |
In
addition to its commercial real estate holdings, Presidio generates fees and rental income from affiliated entities, which manage
and/or own a portfolio of model homes (1) |
|
Portfolio
Value & Debt |
|
|
|
Book
Value |
$138.8
million (2) |
|
|
|
Existing
Secured Debt |
$104.2
million |
|
|
|
|
|
|
|
|
(1)
The Company holds partial ownership interests in several entities which own model home properties
(2)
Includes book value of model homes |
|
|
|
COMMERCIAL
PORTFOLIO |
|
($ in000’s) Property Location | |
Sq., Ft. | | |
Date Acquired | |
Year Property Constructed | |
Purchase Price (1) | | |
Occupancy | | |
Percent Ownership | | |
Mortgage On property | |
Office/Industrial Properties: | |
| | |
| |
| |
| | |
| | |
| | |
| |
Genesis Plaza, San Diego, CA (2) | |
| 57,807 | | |
08/10 | |
1989 | |
| 10,000 | | |
| 96.2 | % | |
| 76.4 | % | |
| 5,997 | |
Dakota Center, Fargo, ND | |
| 119,434 | | |
05/11 | |
1982 | |
| 9,575 | | |
| 58.1 | % | |
| 100.0 | % | |
| 9,321 | |
Grand Pacific Center, Bismarck, ND | |
| 93,711 | | |
03/14 | |
1976 | |
| 5,350 | | |
| 56.0 | % | |
| 100.0 | % | |
| 3,817 | |
Arapahoe Center, Colorado Springs, CO | |
| 79,023 | | |
12/14 | |
2000 | |
| 11,850 | | |
| 88.0 | % | |
| 100.0 | % | |
| 7,515 | |
West Fargo Industrial, West Fargo, ND | |
| 150,099 | | |
08/15 | |
1998/2005 | |
| 7,900 | | |
| 98.3 | % | |
| 100.0 | % | |
| 3,970 | |
300 N.P., West Fargo, ND | |
| 34,517 | | |
08/15 | |
1922 | |
| 3,850 | | |
| 64.4 | % | |
| 100.0 | % | |
| 0 | |
One Park Centre, Westminster CO | |
| 69,174 | | |
08/15 | |
1983 | |
| 9,150 | | |
| 82.3 | % | |
| 100.0 | % | |
| 6,104 | |
Shea Center II, Highlands Ranch, CO | |
| 121,306 | | |
12/15 | |
2000 | |
| 25,325 | | |
| 62.1 | % | |
| 100.0 | % | |
| 17,091 | |
Baltimore, Baltimore, MD | |
| 31,752 | | |
12/21 | |
2006 | |
| 8,892 | | |
| 100.0 | % | |
| 100.0 | % | |
| 5,670 | |
Total Office/Industrial Properties | |
| 756,823 | | |
| |
| |
$ | 91,892 | | |
| 76.8 | % | |
| | | |
$ | 59,485 | |
| |
| | | |
| |
| |
| | | |
| | | |
| | | |
| | |
Retail Properties: | |
| | | |
| |
| |
| | | |
| | | |
| | | |
| | |
Union Town Center, Colorado Springs, CO | |
| 44,042 | | |
12/14 | |
2003 | |
| 11,212 | | |
| 79.5 | % | |
| 100.0 | % | |
| 7,948 | |
Research Parkway, Colorado Springs, CO | |
| 10,700 | | |
08/15 | |
2003 | |
| 2,850 | | |
| 100.0 | % | |
| 100.0 | % | |
| 1,619 | |
Mandolin, Houston, TX (3) | |
| 10,500 | | |
08/21 | |
2021 | |
| 4,892 | | |
| 100.0 | % | |
| 61.3 | % | |
| 3,604 | |
Total Retail Properties | |
| 65,242 | | |
| |
| |
$ | 18,954 | | |
| 86.2 | % | |
| | | |
$ | 13,171 | |
| |
| | | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
| 822,065 | | |
| | |
| |
$ | 110,846 | | |
| 77.5 | % | |
| | | |
$ | 72,656 | |
(1) |
Prior
to January 1, 2009, “Purchase Price” includes our acquisition related costs and expenses for the purchase of the property.
After January 1, 2009, acquisition related costs and expenses were expensed when incurred until ASU 2017-01 was adopted by the Company
in 2017. Since then, acquisition related costs for real estate acquisitions that do not meet the definition of a business, are capitalized. |
|
|
(2) |
Genesis
Plaza is owned by two tenants-in-common, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%,
based on our ownership percentages of each tenant-in-common. |
|
|
(3) |
Owned
by NetREIT Highland LLC, which was formed in 2012. NetREIT Highland LLC is wholly owned by NetREIT Palm Self Storage LP (a joint
venture where Presidio Property trust owns 61.3%). |
MODEL
HOMES PORTFOLIO |
|
Geographic Region | |
No. of Properties | |
Aggregate Square Feet | | |
Approximate % of Square Feet | | |
Current Base Annual Rent | | |
Approximate of Aggregate % Annual Rent | |
Midwest | |
4 | |
| 12,307 | | |
| 3.9 | % | |
$ | 182,748 | | |
| 4.8 | % |
Southeast | |
4 | |
| 9,875 | | |
| 3.1 | % | |
| 172,428 | | |
| 4.5 | % |
Southwest | |
97 | |
| 297,054 | | |
| 93.0 | % | |
| 3,475,596 | | |
| 90.7 | % |
Total | |
105 | |
| 319,236 | | |
| 100 | % | |
$ | 3,830,772 | | |
| 100.0 | % |
CONSOLIDATED
BALANCE SHEET |
|
Presidio
Property Trust, Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
| |
June 30, | | |
December 31, | |
| |
2023 | | |
2022 | |
| |
| (Unaudited) | | |
| | |
ASSETS | |
| | | |
| | |
Real estate assets and lease intangibles: | |
| | | |
| | |
Land | |
$ | 20,803,978 | | |
$ | 19,189,386 | |
Buildings and improvements | |
| 135,185,098 | | |
| 125,979,374 | |
Tenant improvements | |
| 14,426,125 | | |
| 13,861,839 | |
Lease intangibles | |
| 4,110,139 | | |
| 4,110,139 | |
Real estate assets and lease intangibles held for investment, cost | |
| 174,525,340 | | |
| 163,140,738 | |
Accumulated depreciation and amortization | |
| (36,841,025 | ) | |
| (34,644,511 | ) |
Real estate assets and lease intangibles held for investment, net | |
| 137,684,315 | | |
| 128,496,227 | |
Real estate assets held for sale, net | |
| 1,196,336 | | |
| 2,016,003 | |
Real estate assets, net | |
| 138,880,651 | | |
| 130,512,230 | |
Other assets: | |
| | | |
| | |
Cash, cash equivalents and restricted cash | |
| 8,700,791 | | |
| 16,516,725 | |
Deferred leasing costs, net | |
| 1,546,034 | | |
| 1,516,835 | |
Goodwill | |
| 2,423,000 | | |
| 2,423,000 | |
Other assets, net (see Note 6) | |
| 4,161,325 | | |
| 3,511,681 | |
Total other assets | |
| 16,831,150 | | |
| 23,968,241 | |
Investments held in Trust (see Notes 2 & 9) | |
| 23,339,887 | | |
| 136,871,183 | |
TOTAL ASSETS | |
$ | 179,051,688 | | |
$ | 291,351,654 | |
LIABILITIES AND EQUITY | |
| | | |
| | |
Liabilities: | |
| | | |
| | |
Mortgage notes payable, net | |
$ | 102,856,817 | | |
$ | 95,899,176 | |
Mortgage notes payable related to properties held for sale, net | |
| 482,142 | | |
| 999,523 | |
Mortgage notes payable, total net | |
| 103,338,959 | | |
| 96,898,699 | |
Accounts payable and accrued liabilities | |
| 4,373,983 | | |
| 4,028,564 | |
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 9) | |
| 6,655,685 | | |
| 5,046,725 | |
Accrued real estate taxes | |
| 977,658 | | |
| 1,879,875 | |
Dividends payable preferred stock | |
| 177,145 | | |
| 178,511 | |
Lease liability, net | |
| 31,799 | | |
| 46,833 | |
Below-market leases, net | |
| 15,753 | | |
| 18,240 | |
Total liabilities | |
| 115,570,982 | | |
| 108,097,447 | |
Commitments and contingencies (Note 2 & 9): | |
| | | |
| | |
SPAC Class A common stock subject to possible redemption; 2,187,728 as of June 30, 2023 and 13,225,000 shares as of December 31, 2022 (at $10.45 per share), net of issuance cost of approximately $6,400,000 | |
| 16,748,849 | | |
| 130,411,135 | |
Equity: | |
| | | |
| | |
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 901,375 shares issued and outstanding (liquidation preference $25.00 per share) as of June 30, 2023 and 913,987 shares issued and outstanding as of December 31, 2022 | |
| 9,014 | | |
| 9,140 | |
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,849,710 shares and 11,807,893 shares were issued and outstanding at June 30, 2023 and December 31, 2022, respectively | |
| 118,497 | | |
| 118,079 | |
Additional paid-in capital | |
| 180,365,055 | | |
| 182,044,157 | |
Dividends and accumulated losses | |
| (142,294,778 | ) | |
| (138,341,750 | ) |
Total stockholders’ equity before noncontrolling interest | |
| 38,197,788 | | |
| 43,829,626 | |
Noncontrolling interest | |
| 8,534,069 | | |
| 9,013,446 | |
Total equity | |
| 46,731,857 | | |
| 52,843,072 | |
TOTAL LIABILITIES AND EQUITY | |
$ | 179,051,688 | | |
$ | 291,351,654 | |
CONSOLIDATED
STATEMENT OF OPERATIONS |
|
Presidio
Property Trust, Inc. and Subsidiaries
Condensed
Consolidated Statements of Operations
(Unaudited)
| |
For the Three Months Ended June 30, | | |
For the Six Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Rental income | |
$ | 4,329,588 | | |
$ | 4,188,076 | | |
$ | 8,271,641 | | |
$ | 8,640,394 | |
Fees and other income | |
| 214,284 | | |
| 132,784 | | |
| 393,723 | | |
| 253,607 | |
Total revenue | |
| 4,543,872 | | |
| 4,320,860 | | |
| 8,665,364 | | |
| 8,894,001 | |
Costs and expenses: | |
| | | |
| | | |
| | | |
| | |
Rental operating costs | |
| 1,399,159 | | |
| 1,348,083 | | |
| 2,974,149 | | |
| 2,931,556 | |
General and administrative | |
| 1,813,184 | | |
| 1,214,005 | | |
| 3,777,804 | | |
| 2,797,696 | |
Depreciation and amortization | |
| 1,368,829 | | |
| 1,316,193 | | |
| 2,702,403 | | |
| 2,655,418 | |
Total costs and expenses | |
| 4,581,172 | | |
| 3,878,281 | | |
| 9,454,356 | | |
| 8,384,670 | |
Other income (expense): | |
| | | |
| | | |
| | | |
| | |
Interest expense - mortgage notes | |
| (1,336,415 | ) | |
| (1,085,860 | ) | |
| (2,204,182 | ) | |
| (2,103,573 | ) |
Interest and other income, net | |
| 398,085 | | |
| 93,128 | | |
| 1,140,201 | | |
| 166,733 | |
Gain on sales of real estate, net | |
| 1,119,952 | | |
| 1,227,484 | | |
| 1,537,289 | | |
| 2,750,269 | |
Income tax expense | |
| (349,074 | ) | |
| (259,285 | ) | |
| (497,527 | ) | |
| (524,524 | ) |
Total other income (expense), net | |
| (167,452 | ) | |
| (24,533 | ) | |
| (24,219 | ) | |
| 288,905 | |
Net income (loss) | |
| (204,752 | ) | |
| 418,046 | | |
| (813,211 | ) | |
| 798,236 | |
Less: Income attributable to noncontrolling interests | |
| (1,094,852 | ) | |
| (709,202 | ) | |
| (1,481,933 | ) | |
| (1,917,878 | ) |
Net loss attributable to Presidio Property Trust, Inc. stockholders | |
$ | (1,299,604 | ) | |
$ | (291,156 | ) | |
$ | (2,295,144 | ) | |
$ | (1,119,642 | ) |
Less: Preferred Stock Series D dividends | |
| (532,285 | ) | |
| (539,056 | ) | |
| (1,067,733 | ) | |
| (1,078,111 | ) |
Less: Series A Warrant dividend | |
| — | | |
| — | | |
| — | | |
| (2,456,512 | ) |
Net loss attributable to Presidio Property Trust, Inc. common stockholders | |
$ | (1,831,889 | ) | |
$ | (830,212 | ) | |
$ | (3,362,877 | ) | |
$ | (4,654,265 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: | |
| | | |
| | | |
| | | |
| | |
Basic & Diluted | |
$ | (0.15 | ) | |
$ | (0.07 | ) | |
$ | (0.28 | ) | |
$ | (0.39 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding - basic & diluted | |
| 11,839,359 | | |
| 11,799,689 | | |
| 11,837,020 | | |
| 11,786,741 | |
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
Presidio
Property Trust, Inc. and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
| |
For the Six Months Ended June 30, | |
| |
2023 | | |
2022 | |
Cash flows from operating activities: | |
| | | |
| | |
Net (loss) income | |
$ | (813,211 | ) | |
$ | 798,236 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 2,702,403 | | |
| 2,655,418 | |
Stock compensation | |
| 540,501 | | |
| 568,701 | |
Bad debt expense | |
| 32,729 | | |
| 13,416 | |
Gain on sale of real estate assets, net | |
| (1,537,289 | ) | |
| (2,750,269 | ) |
Net change in fair value marketable securities | |
| (190,327 | ) | |
| 358,658 | |
Net change in fair value SPAC Trust Account | |
| (939,522 | ) | |
| (201,767 | ) |
Amortization of financing costs | |
| 187,303 | | |
| 125,850 | |
Amortization of below-market leases | |
| (2,487 | ) | |
| (27,445 | ) |
Straight-line rent adjustment | |
| (240,007 | ) | |
| (46,305 | ) |
Changes in operating assets and liabilities: | |
| | | |
| | |
Other assets | |
| (399,159 | ) | |
| 317,942 | |
Accounts payable and accrued liabilities | |
| 239,297 | | |
| (1,423,341 | ) |
Accounts payable and accrued liabilities for the SPAC | |
| (281,723 | ) | |
| 138,645 | |
Accrued real estate taxes | |
| (902,217 | ) | |
| (987,636 | ) |
Net cash used in operating activities | |
| (1,603,709 | ) | |
| (459,897 | ) |
Cash flows from investing activities: | |
| | | |
| | |
Real estate acquisitions | |
| (12,932,128 | ) | |
| (4,646,330 | ) |
Additions to buildings and tenant improvements | |
| (1,001,836 | ) | |
| (832,990 | ) |
Investment in marketable securities | |
| (1,826,458 | ) | |
| (661,247 | ) |
Proceeds from sale of marketable securities | |
| 1,951,095 | | |
| 1,111,608 | |
Investment of SPAC IPO proceeds into Trust Account | |
| (389,942 | ) | |
| (134,895,000 | ) |
Withdrawals from Trust Account for SPAC taxes | |
| 792,480 | | |
| — | |
Withdrawals from Trust Account for Redemption of SPAC Shares | |
| 114,068,280 | | |
| — | |
Deletions / (additions) to deferred leasing costs | |
| 3,872 | | |
| (35,864 | ) |
Proceeds from sales of real estate, net | |
| 4,590,187 | | |
| 18,839,913 | |
Net cash provided by (used in) investing activities | |
| 105,255,550 | | |
| (121,119,910 | ) |
Cash flows from financing activities: | |
| | | |
| | |
Proceeds from mortgage notes payable, net of issuance costs | |
| 12,848,849 | | |
| 12,590,235 | |
Repayment of mortgage notes payable | |
| (6,417,278 | ) | |
| (7,361,659 | ) |
Payment of deferred offering costs | |
| — | | |
| (3,201,266 | ) |
Distributions to noncontrolling interests, net | |
| (1,961,310 | ) | |
| (2,614,352 | ) |
Proceeds from initial public offering of SPAC | |
| — | | |
| 132,250,000 | |
Redemption of SPAC shares | |
| (114,068,280 | ) | |
| — | |
Repurchase of Series A Common Stock, at cost | |
| — | | |
| (30,729 | ) |
Repurchase of Series D Preferred Stock, at cost | |
| (211,872 | ) | |
| — | |
Dividends paid to Series D Preferred Stockholders | |
| (1,067,733 | ) | |
| (1,078,112 | ) |
Dividends paid to Series A Common Stockholders | |
| (590,151 | ) | |
| (2,609,454 | ) |
Net cash (used in) provided by financing activities | |
| (111,467,775 | ) | |
| 127,944,663 | |
Net (decrease) increase in cash equivalents and restricted cash | |
| (7,815,934 | ) | |
| 6,364,856 | |
Cash, cash equivalents and restricted cash - beginning of period | |
| 16,516,725 | | |
| 14,702,089 | |
Cash, cash equivalents and restricted cash - end of period | |
$ | 8,700,791 | | |
$ | 21,066,945 | |
Supplemental disclosure of cash flow information: | |
| | | |
| | |
Interest paid-mortgage notes payable | |
$ | 2,351,642 | | |
$ | 1,971,942 | |
Non-cash financing activities: | |
| | | |
| | |
Deferred offering cost SPAC, underwriting commission payable | |
$ | — | | |
$ | 4,628,750 | |
Accrued excise tax on January 24, 2023 SPAC redemptions | |
$ | 1,140,683 | | |
$ | — | |
Dividends payable - Preferred Stock Series D | |
$ | 177,145 | | |
$ | 179,685 | |
EBITDAre
RECONCILIATION |
|
| |
For 3 Months Ended Jun 30, | | |
For 6 Months Ended Jun 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders | |
$ | (1,831,889 | ) | |
$ | (830,212 | ) | |
$ | (3,362,877 | ) | |
$ | (4,654,265 | ) |
Adjustments | |
| | | |
| | | |
| | | |
| | |
Interest Expense | |
| 1,336,415 | | |
| 1,085,861 | | |
| 2,204,182 | | |
| 2,103,573 | |
Depreciation and Amortization | |
| 1,367,585 | | |
| 1,302,471 | | |
| 2,699,916 | | |
| 2,627,973 | |
Net loss (gain) on sale of real estate | |
| (1,119,952 | ) | |
| (1,227,484 | ) | |
| (1,537,289 | ) | |
| (2,750,269 | ) |
Income Taxes | |
| 349,074 | | |
| 259,285 | | |
| 497,527 | | |
| 524,524 | |
| |
| | | |
| | | |
| | | |
| | |
EBITDAre | |
$ | 101,233 | | |
$ | 589,921 | | |
$ | 501,459 | | |
$ | (2,148,464 | ) |
FFO
AND CORE FFO RECONCILIATION |
|
| |
For the Three Months Ended | | |
For the Six Months Ended | |
| |
6/30/2023 | | |
6/30/2022 | | |
6/30/2023 | | |
6/30/2022 | |
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders | |
$ | (1,831,889 | ) | |
$ | (830,212 | ) | |
$ | (3,362,877 | ) | |
$ | (4,654,265 | ) |
Adjustments: | |
| | | |
| | | |
| | | |
| | |
Income attributable to noncontrolling interests | |
| 1,094,852 | | |
| 709,202 | | |
| 1,481,933 | | |
| 1,917,878 | |
Depreciation and amortization | |
| 1,368,829 | | |
| 1,316,193 | | |
| 2,702,403 | | |
| 2,655,418 | |
Amortization of above and below market leases, net | |
| (1,244 | ) | |
| (13,722 | ) | |
| (2,487 | ) | |
| (27,445 | ) |
Loss (gain) on sale of real estate assets, net | |
| (1,119,952 | ) | |
| (1,227,484 | ) | |
| (1,537,289 | ) | |
| (2,750,269 | ) |
FFO | |
$ | (489,404 | ) | |
$ | (46,023 | ) | |
$ | (718,317 | ) | |
$ | (2,858,683 | ) |
Restricted stock compensation | |
| 279,656 | | |
| 280,981 | | |
| 540,501 | | |
| 568,700 | |
Series A Warrant dividend | |
| - | | |
| - | | |
| - | | |
| 2,456,512 | |
Core FFO | |
$ | (209,748 | ) | |
$ | 234,958 | | |
$ | (177,816 | ) | |
$ | 166,529 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding - basic and diluted | |
| 11,839,359 | | |
| 11,799,689 | | |
| 11,837,020 | | |
| 11,786,741 | |
| |
| | | |
| | | |
| | | |
| | |
Core FFO / Wgt Avg Share | |
$ | (0.018 | ) | |
$ | 0.020 | | |
$ | (0.015 | ) | |
$ | 0.014 | |
| |
| | | |
| | | |
| | | |
| | |
Quarterly Dividends / Share | |
$ | 0.023 | | |
$ | 0.106 | | |
$ | 0.045 | | |
$ | 0.211 | |
DEFINITIONS
– NON-GAAP MEASUREMENTS |
|
|
EBITDAre
- 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.
Funds
from Operations (“FFO”) – The Company evaluates performance based on Funds From Operations, which
we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions
paid to equity holders. The Company defines FFO, a non-GAAP measure, as net income or loss (computed in accordance with GAAP), excluding
gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized
and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and
below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to
exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.
However,
because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result
from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from
operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate
FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to
other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s
performance.
Core
Funds from Operations (“Core FFO”) – We calculate Core FFO, a non-GAAP measure, by using FFO as defined
by NAREIT and adjusting for certain other non-core items. We also exclude from our Core FFO calculation acquisition costs, loss on early
extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant
dividends and the amortization of stock-based compensation.
We
believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our
ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s
Core FFO may not be comparable to such other REITs’ Core FFO.
v3.23.2
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|
Aug. 14, 2023 |
Document Type |
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|
Entity File Number |
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|
Entity Registrant Name |
Presidio
Property Trust, Inc.
|
Entity Central Index Key |
0001080657
|
Entity Tax Identification Number |
33-0841255
|
Entity Incorporation, State or Country Code |
MD
|
Entity Address, Address Line One |
4995
Murphy Canyon Road
|
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Suite 300
|
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San
Diego
|
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CA
|
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|
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|
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Series A Common Stock, $0.01 par value per share |
|
Title of 12(b) Security |
Series
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|
Trading Symbol |
SQFT
|
Security Exchange Name |
NASDAQ
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9.375% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share |
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Title of 12(b) Security |
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Trading Symbol |
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NASDAQ
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