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Yahoo
14-05-2025
- Business
- Yahoo
Presidio Property Trust, Inc. Announces Earnings for the Three Months Ended March 31, 2025
SAN DIEGO, CA / / May 14, 2025 / Presidio Property Trust, Inc. (NASDAQ:SQFT)(NASDAQ:SQFTP)(NASDAQ:SQFTW) (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for its three months ended March 31, 2025. "In spite of a challenging macroeconomic climate and economic uncertainty, our team has remained more focused than ever on strategic execution and creating a strong financial balance sheet to create value across our portfolio," said Jack Heilbron, the Company's President and Chief Executive Officer. "A noteworthy accomplishment during the first quarter was our 100% retention rate for expiring leases," said Gary Katz, the Company's Chief Investment Officer. "Activity within both the acquisition and resale segments of our model home business remains balanced. I am excited about the recent acquisitions, which add another nationally ranked builder to our portfolio. This not only expands our geographical footprint but also represents our ability to attract new clients and desirable product, to complement our existing model home portfolio," said Steve Hightower, President of the Model Home Division. The Three Months Ended March 31, 2025, Financial Results Net income attributable to the Company's common stockholders for the three months ended March 31, 2025 was approximately $1.7 million, or $.13 per basic and diluted share, compared to a net loss of approximately $5.8 million, or ($0.47) per basic and diluted share for the three months ended March, 31, 2024. The change in net income attributable to the Company's common stockholders was a result of: Total revenues were approximately $4.1 million for the three months ended March 31, 2025, compared to approximately $4.8 million for the same period in 2024. As of March 31, 2025, we had approximately $117.4 million in net real estate assets including 84 model homes, compared to approximately $135.3 million in net real estate assets including 88 model homes at March 31, 2024. The average number of model homes held during the three months ended March 31, 2025 and 2024 was 81 and 99, respectively. The change in revenue is directly related to the decrease in model home rental income and transaction fees during the current period, and the sale of our two commercial properties on February 7, 2025. General and administrative ("G&A") expenses for the three months ended March 31, 2025 and 2024 totaled approximately $1.7 million and $2.1 million, respectively. G&A expenses as a percentage of total revenue was 40.3% and 43.5% for the three months ended March 31, 2025 and 2024, respectively. G&A expenses for the three months ended March 31, 2025 decreased by approximately $0.4 million partially related to consulting fees in 2024 including a one-time payment for the setup of DMH 207, and additional legal fees related to Zuma Capital Management, LLC (Zuma Capital"), which was not repeated in 2025. Additionally, stock compensation was down by approximately $0.3 million due to the reduction of new restricted stock grants in 2025, slightly offset by an increase in accrued board compensation of $0.1 million related to estimated cash payment in-lieu-of restricted stock grants. During the three months ended March 31, 2025, Company sold six (6) model homes for approximately $2.8 million, net of sales costs, and recognized a gain of approximately $0.2 million. Additionally on February 7, 2025, the Company sold two commercial properties, Union Town Center and Research Parkway, to a single buyer for approximately $17.0 million and recognized a net gain of approximately $4.2 million, net of closing costs. As of March 31, 2025 we held 29,431 shares of CDT, as a result of their 1-for-100 reverse stock split in January 2025, 709,000 public common stock warrants of CDTTW, and 540,000 private common stock warrants, with a combined value of approximately $29,519. Conduit's common stock (CDT) and public common stock warrants (CDTTW) and Private CDT Warrants presented on the consolidated balance sheets were measured at fair value using Level 1 and Level 3 market prices, taking into account the adoption of ASU 2022-03 Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The fair value adjusted during the three months ended March 31, 2025 resulted in the Company recording a loss of approximately $0.2 million as compared to a loss of approximately $3.9 million recorded during the three months ended March 31, 2024. Interest expense, including amortization of deferred finance charges was approximately $1.5 million for the three months ended March 31, 2025, compared to approximately $1.5 million for the same period in 2024. The weighted average interest rate on our outstanding debt was 5.83% and 5.23% as of March 31, 2025 and 2024, respectively. Mortgage notes payable totaled approximately $94.4 million and $102.3 million as of March 31, 2025 and 2024, respectively. The decrease in mortgage notes payable is a direct result of the sale of our two commercial properties during February 2025 and the change in the number of model homes. FFO (non-GAAP) decreased by approximately $0.2 million to approximately $(1.2 million) from $(1.0 million) for the three months ended March 31, 2025 and 2024, 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 $0.6 million, from approximately $(0.4 million) for the three months ended March 31, 2024, to approximately $(1.0 million) for the three months ended March 31, 2025. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. Acquisitions and Dispositions for the three months Ended March 31, 2025: Acquisitions during the three months ended March 31, 2025: We acquired 12 model homes for approximately $4.3 million. The purchase price was paid through cash payments of approximately $3.0 million and mortgage notes of approximately $1.3 million. Dispositions during the three months ended March 31, 2025: On February 7, 2025, the Company sold two commercial properties, Union Town Center and Research Parkway, to a single buyer for approximately $17.0 million and recognized a net gain of approximately $4.2 million, net of closing costs. The Company sold six (6) model homes for approximately $2.8 million, net of sales costs, and recognized a gain of approximately $0.2 million. Segment Income during the three months ended March 31, 2025: The following tables compare the Company's segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position as of and for the three months ended March 31, 2025 and 2024 respectively. The line items listed in the below NOI tables include the significant expense considered by the CODM for cash allocations on future investments. The Other Non-Segment & Consolidating Items represent corporate activity, the investment in Conduit Pharmaceutical, and other eliminating items for consolidation. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment. This includes the loss on Conduit marketable securities. The following tables compare the Company's segment activity to its results of operations and financial position as of and for the three months ended March 31, 2025, and March 31, 2024: For the Three Months Ended March 31, 2025 Retail Office/Industrial Model Homes Corporate and Other Total Rental revenue $ 206,439 $ 2,467,551 $ 915,521 $ - $ 3,589,511 Recovery revenue 56,439 386,479 - - 442,918 Other operating revenue 400 62,362 (1,754 ) 31,747 92,755 Total revenues 263,278 2,916,392 913,767 31,747 4,125,184 Rental operating costs 100,568 1,618,365 48,157 (154,448 ) 1,612,642 Net Operating Income (NOI) 162,710 1,298,027 865,610 186,195 2,512,542 Gain on Sale - Model Homes - - 240,899 - 240,899 Impairment of Model Homes - - (26,943 ) - (26,943 ) Adjusted NOI $ 162,710 $ 1,298,027 $ 1,079,566 $ 186,195 $ 2,726,498 The CODM reviews on a regular basis the GAAP performance of each segment, including the significant segment expenses reported for GAAP shown in the table below. Our significant segment expenses include consolidated expense categories presented in our consolidated statements of operations, as well as rental operating costs. This information is provided to the CODM and factors into the CODM's decision making for company-wide strategy. The following tables compare the Company's segment activity and to its results of GAAP operations and financial position as of and for the three months ended March 31, 2025 and 2024, respectively. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment as noted above. For the Three Months Ended March 31, 2025 Retail Office/Industrial Model Homes Corporate and Other Total Revenues: Rental income $ 262,878 $ 2,854,030 $ 915,521 $ - $ 4,032,429 Fees and other income 400 62,362 (1,754 ) 31,747 92,755 Total revenue 263,278 2,916,392 913,767 31,747 4,125,184 Costs and expenses: Rental operating costs 100,568 1,618,365 48,157 (154,448 ) 1,612,642 General and administrative - 16,850 229,961 1,415,167 1,661,978 Depreciation and amortization 31,689 999,169 212,012 1,234 1,244,104 Impairment of goodwill and real estate assets - - 26,943 - 26,943 Total costs and expenses 132,257 2,634,384 517,073 1,261,953 4,545,667 Other income (expense): Interest expense - mortgage notes (158,097 ) (891,330 ) (459,710 ) (1,333 ) (1,510,470 ) Interest and other income, net - - 8 5,141 5,149 Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) - - - (176,658 ) (176,658 ) Gain on sales of real estate, net 4,213,068 - 240,900 - 4,453,968 Income tax (expense) benefit - - (22,171 ) 47,580 25,409 Total other income (expense), net 4,054,971 (891,330 ) (240,973 ) (125,270 ) 2,797,398 Net income (loss) 4,185,992 (609,322 ) 155,721 (1,355,476 ) 2,376,915 Less: Income attributable to noncontrolling interests - (17,959 ) (93,604 ) - (111,563 ) Net income (loss) attributable to Presidio Property Trust, Inc. stockholders $ 4,185,992 $ (627,281 ) $ 62,117 $ (1,355,476 ) $ 2,265,352 Dividends paid during the three months ended March 31, 2025 and 2024: The following is a summary of distributions declared per share of our Series D Preferred Stock for the three months ended March 31, 2025 and March 31, 2024. Series D Preferred Stock Month 2025 2024 Distributions Declared Distributions Declared January $ 0.19531 $ 0.19531 February 0.19531 0.19531 March 0.19531 0.19531 Total $ 0.58593 $ 0.58593 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 primarily in the sun belt states. Presidio's office, industrial, and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. For more information on Presidio, please visit Presidio's website at 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 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, other non-recuring expenses, 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, Investor Relations Contact: Presidio Property Trust, Hartkorn, Investor RelationsLHartkorn@ (760) 471-8536 x1244 Presidio Property Trust, Inc. and SubsidiariesConsolidated Balance Sheets March 31, December 31, 2025 2024 (unaudited) ASSETS Real estate assets and lease intangibles: Land $ 16,036,702 $ 15,983,323 Buildings and improvements 103,409,116 102,862,977 Tenant improvements 16,488,963 16,488,066 Lease intangibles 3,475,531 3,776,654 Real estate assets and lease intangibles held for investment, cost 139,410,312 139,111,020 Accumulated depreciation and amortization (34,560,209 ) (33,700,262 ) Real estate assets and lease intangibles held for investment, net 104,850,103 105,410,758 Real estate assets held for sale, net 12,515,912 22,185,742 Real estate assets, net 117,366,015 127,596,500 Other assets: Cash, cash equivalents and restricted cash 11,956,853 8,036,496 Deferred leasing costs, net 1,431,607 1,666,135 Goodwill 1,389,000 1,389,000 Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9) 29,519 206,177 Deferred tax asset 298,645 298,645 Other assets, net (see Note 6) 2,953,277 3,376,697 Total other assets 18,058,901 14,973,150 TOTAL ASSETS (1) $ 135,424,916 $ 142,569,650 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 81,525,487 $ 80,977,448 Mortgage notes payable related to properties held for sale, net 12,217,060 21,116,646 Mortgage notes payable, total net 93,742,547 102,094,094 Accounts payable and accrued liabilities 3,794,229 3,290,170 Accrued real estate taxes 1,070,006 1,972,477 Dividends payable 192,232 194,784 Lease liability, net 58,489 64,345 Below-market leases, net 7,047 8,625 Total liabilities 98,864,550 107,624,495 Commitments and contingencies (see Note 10) Equity: Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 984,238 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2025 and 997,082 shares issued and outstanding as of December 31, 2024 9,842 9,971 Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 12,834,317 shares and 12,834,317 shares were issued and outstanding at March 31, 2025 and December 31, 2024, respectively 128,343 128,343 Additional paid-in capital 185,805,501 185,770,842 Dividends and accumulated losses (157,688,233 ) (159,374,010 ) Total stockholders' equity before noncontrolling interest 28,255,453 26,535,146 Noncontrolling interest 8,304,913 8,410,009 Total equity 36,560,366 34,945,155 TOTAL LIABILITIES AND EQUITY $ 135,424,916 $ 142,569,650 (1) As of March 31, 2025 and December 31, 2024, includes approximately $10.8 million and $11.4 million, respectively, of assets related to consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities. Presidio Property Trust, Inc. and SubsidiariesConsolidated Statements of Operations For the Three Months Ended March 31, 2025 2024 Revenues: Rental income $ 4,032,429 $ 4,639,726 Fees and other income 92,755 150,335 Total revenue 4,125,184 4,790,061 Costs and expenses: Rental operating costs 1,612,642 1,563,577 General and administrative 1,661,978 2,084,450 Depreciation and amortization 1,244,104 1,351,018 Impairment of goodwill and real estate assets 26,943 95,548 Total costs and expenses 4,545,667 5,094,593 Other income (expense): Interest expense - mortgage notes (1,510,470 ) (1,515,206 ) Interest and other income, net 5,149 4,646 Gain on sales of real estate, net 4,453,968 2,018,095 Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) (176,658 ) (3,861,233 ) Income tax (expense) benefit 25,409 (79,565 ) Total other income (expense), net 2,797,398 (3,433,263 ) Net (loss) income 2,376,915 (3,737,795 ) Less: Income attributable to noncontrolling interests (111,563 ) (1,503,868 ) Net income (loss) attributable to Presidio Property Trust, Inc. stockholders $ 2,265,352 $ (5,241,663 ) Less: Preferred Stock Series D dividends (579,575 ) (522,032 ) Net income (loss) attributable to Presidio Property Trust, Inc. common stockholders $ 1,685,777 $ (5,763,695 ) Net income (loss) per share attributable to Presidio Property Trust, Inc. common stockholders: Basic & Diluted $ 0.13 $ (0.47 ) Weighted average number of common shares outstanding - basic & dilutive 12,973,299 12,293,190 FFO AND CORE FFO RECONCILIATION For the Three Months Ended March 31, 2025 2024 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ 1,685,777 $ (5,763,695 ) Adjustments: Income attributable to noncontrolling interests 111,563 1,503,868 Depreciation and amortization 1,244,104 1,351,018 Amortization of above and below market leases, net (1,022 ) (1,244 ) Impairment of real estate assets 26,943 95,548 Loss on marketable securities 176,658 3,861,233 Net gain on sale of real estate assets (4,453,968 ) (2,018,095 ) FFO $ (1,209,945 ) $ (971,367 ) Stock Based Compensation 229,502 541,921 Core FFO $ (980,442 ) $ (429,445 ) Weighted average number of common shares outstanding - basic and diluted 12,973,299 12,293,190 Core FFO / Wgt Avg Share $ (0.076 ) $ (0.035 ) SOURCE: Presidio Property Trust View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- General
- Yahoo
San Diego fire pits: Are they going up in smoke?
SAN DIEGO (FOX 5/KUSI) — The sound of a fire crackling, buffeted by windy ocean spray is a luxury that might be a thing of the past in the time of San Diego austerity, as the mayor and city council race to trim $258 million from the budget. Supporters of fire pits say the $135,000 savings for scrapping San Diego's fire rings is out of line with what the city is. 'That is why people come to San Diego is to have that beach culture experience, catching a wave during the day, having a beach bonfire at night, that's what makes San Diego,' said Richard Bailey, a Mission Beach business owner and former Coronado Mayor. Business owners say the fire pits keep the atmosphere alive well after dark. The Mission Beach Town Council on the other hand says for them cutting the fire pits makes sense financially and it cleans up a problem they've been trying to fix anyway. 'The reason I feel the fire pits are a no brainer is because San Diego has the eighth worse ozone pollution in the nation. It's surprising to everybody I tell, and when they find out, 'God we are this polluted what can we do?' Eliminate 184 fire pits,' said Gary Katz, a member of the Ocean Beach Town Council. Locals who live in South Mission Beach say people burn couches, trash and even scooters in the fire pits and the smoke blows right into their homes. 'There's an L shape, so they are up the beach this way and then down the parking lot to the east, so no matter which way the wind blows, there is a 99% chance we are going to get a lot of smoke,' said Marty Zimmerman, a Mission Beach resident. The fire pits are currently cut from the draft budget so it will take the city council to save the beach fires. 'I would hope they would keep it, regardless of the cost, it benefits the people that live here the most,' said Kelvin Dean, who was born and raised in San Diego. The final budget will be submitted by June 10. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
