Presidio Property Trust, Inc. Announces Earnings for the Third Quarter Ended September 30, 2025

Rhea-AI Summary

Presidio Property Trust (Nasdaq:SQFT) reported results for the quarter ended September 30, 2025. Net loss attributable to common stockholders improved to $1.9 million ($1.53 per share) from $6.6 million the prior year period. Total revenues were approximately $4.2 million versus $4.7 million a year earlier. Net real estate assets declined to $113.3 million from $131.4 million, reflecting the February 2025 sale of two commercial properties. FFO remained about $(0.6) million; Core FFO fell to $(0.3) million from $0.2 million. Mortgage debt totaled $94.6 million and the weighted average interest rate rose to 6.17%.

Positive

• Net loss narrowed to $1.9M from $6.6M
• Mortgage notes payable reduced to $94.6M after property sales
• G&A expense decreased by approximately $0.2M
• Proceeds from sales: $1.5M from three model homes

Negative

• Total revenue declined by ~10.6% to $4.2M
• Net real estate assets down ~13.8% to $113.3M
• Core FFO fell from $0.2M to $(0.3M)

Insights

Real Estate REIT Analyst

Improved GAAP loss but continued negative operating cash metrics; mixed signs for recovery over next several quarters.

Presidio Property Trust narrowed its net loss to $1.9 million for the quarter ended September 30, 2025 from $6.6 million a year earlier, driven in part by gains on recent model‑home sales and lower G&A. Total revenue of $4.2 million declined versus prior year, and mortgage debt fell to $94.6 million after February dispositions; interest cost remained roughly flat despite a higher weighted rate of 6.17%.

The operational picture remains mixed: reported FFO stayed negative at about $(0.6 million) and Core FFO moved from positive to $(0.3 million), signaling that recurring cash from operations has not yet recovered. One‑time items (gain on sale of model homes and a $0.3 million escrow holdback) lifted GAAP results but do not replace sustainable operating cash flow. Cost discipline appears modestly effective given G&A fell and compensation-related expenses declined.

Watch near term: continued resale demand and mortgage rate direction referenced could affect sales cadence and timing of cash flow normalization; monitor sequential Core FFO, recurring NOI for the Model Homes segment (reported adjusted NOI $931,055), and debt levels over the next two quarters. These items will determine whether GAAP improvements translate into durable recovery or remain dependent on asset sales.

SAN DIEGO, CA / ACCESS Newswire / November 12, 2025 / Presidio Property Trust, Inc. (Nasdaq:SQFT, SQFTP, SQFTW) (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for its three months ended September 30, 2025.

"We fought through the worst office market in recent years to put Presidio in a position to capitalize when conditions normalized-and here we are, as industry headwinds are turning into tailwinds.," said Jack Heilbron, the Company's President and Chief Executive Officer.

"We have seen a slight uptick in resale activity as mortgage rates have inched lower; recent sales have exceeded our expectations. With the sentiment that rates will continue to ease, we are hopeful that activity will persist, allowing us to take advantage of the expected surge in demand. We also continue to analyze numerous acquisition opportunities, identifying properties that might fit our strict criteria," said Steve Hightower, President of the Model Home Division.

The Third Quarter Ended September 30, 2025, Financial Results

Net loss attributable to the Company's common stockholders for the three months ended September 30, 2025 was approximately $1.9 million, or $1.53 per basic and diluted share, compared to a net loss of approximately $6.6 million, or ($5.33) per basic and diluted share for the three months ended September 30, 2024. The change in net income attributable to the Company's common stockholders was a result of:

	•	Total revenues were approximately $4.2 million for the three months ended September 30, 2025, compared to approximately $4.7 million for the same period in 2024. As of September 30, 2025, we had approximately $113.3 million in net real estate assets including 84 model homes, compared to approximately $131.4 million in net real estate assets including 83 model homes at September 30, 2024. The average number of model homes held during the three months ended September 30, 2025 and 2024 was 86 and 82, respectively. The change in revenue is directly related to the decrease in commercial real estate rental income during the current period, from the sale of our two commercial properties on February 7, 2025.
	•	General and administrative ("G&A") expenses for the three months ended September 30, 2025 and 2024 totaled approximately $1.5 million and $1.6 million, respectively. G&A expenses as a percentage of total revenue was 32.4% and 34.5% for the three months ended September 30, 2025 and 2024, respectively. G&A expenses for the three months ended September 30, 2025 decreased by approximately $0.2 million partially related to a decrease in bonus expense totaling approximately $115,163 for executives and officers. Additionally, stock compensations decreased by approximately $59,574.
	•	During the three months ended September, 2025, Company sold three (3 model homes for approximately $1.5 million, net of sales costs, and recognized a gain of approximately $19,685. Additionally, in September we received $0.3 million related to a escrow holdback from the sale of our UTC and Research properties in February 2025 that was recognized a gain on sale.
	•	During the three months ended September 30, 2025 and 2024, we recognized non-cash impairment charges of approximately $0.1 million related to four model home properties and approximately $0.7 million related to three model homes and one commercial property (Dakota Center), respectively.
	•	Interest expense, including amortization of deferred finance charges was approximately $1.5 million for the three months ended September 30, 2025, compared to approximately $1.5 million for the same period in 2024. The weighted average interest rate on our outstanding debt was 6.17% and 5.44% as of September 30, 2025 and 2024, respectively. Mortgage notes payable totaled approximately $94.6 million and $103.2 million as of September 30, 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) totaled approximately $(0.6 million) and $(0.6 million) for the three months ended September 30, 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 $0.5 million, from approximately $0.2 million for the three months ended September 30, 2024, to approximately $(0.3 million) for the three months ended September 30, 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 third quarter ended September 30, 2025:

There were no acquisitions during the three months ended September 30, 2025:

Dispositions during the three months ended September 30, 2025:

• The Company sold three (3) model homes for approximately $1.5 million, net of sales costs, and recognized a gain of approximately $19,685.

Segment Income during the three months ended September 30, 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 September 30, 2025. 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 September 30, 2025:

		For the Three Months Ended September 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Rental revenue		$	93,574			$	2,372,147			$	1,035,923			$	-			$	3,501,644
Recovery revenue			-				607,222				-				-				607,222
Other operating revenue			-				64,450				7,103				15,723				87,276
Total revenues			93,574				3,043,819				1,043,026				15,723				4,196,142
Rental operating costs			4,828				1,627,174				48,743				(146,182	)			1,534,563
Net Operating Income (NOI)			88,746				1,416,645				994,283				161,905				2,661,579
Gain on Sale - Model Homes			-				-				19,685				-				19,685
Impairment of Model Homes			-				-				(82,913	)			-				(82,913	)
Adjusted NOI		$	88,746			$	1,416,645			$	931,055			$	161,905			$	2,598,351

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 September 30, 2025. 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 September 30, 2025
		Retail				Office/Industrial				Model Homes				Corporate and Other				Total
Revenues:
Rental income		$	93,574			$	2,979,369			$	1,035,923			$	-			$	4,108,866
Fees and other income			-				64,450				7,103				15,723				87,276
Total revenue			93,574				3,043,819				1,043,026				15,723				4,196,142
Costs and expenses:
Rental operating costs			4,828				1,627,174				48,743				(146,182	)			1,534,563
General and administrative			-				245				174,265				1,275,551				1,450,061
Depreciation and amortization			22,928				987,602				223,876				1,234				1,235,640
Impairment of goodwill and real estate assets			-				-				82,913				-				82,913
Total costs and expenses			27,756				2,615,021				529,797				1,130,603				4,303,177
Other income (expense):
Interest expense - mortgage notes			(39,762	)			(932,226	)			(525,755	)			(1,332	)			(1,499,075	)
Interest and other income, net			-				-				8				5,255				5,263
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)			-				-				-				(212	)			(212	)
Gain on sales of real estate, net			281,290				-				19,685				-				300,975
Income tax (expense) benefit			-				-				14,871				-				14,871
Total other income (expense), net			241,528				(932,226	)			(491,191	)			3,711				(1,178,178	)
Net income (loss)			307,346				(503,428	)			22,038				(1,111,169	)			(1,285,213	)
Less: Income attributable to noncontrolling interests			-				(9,777	)			4,142				-				(5,635	)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders		$	307,346			$	(513,205	)		$	26,180			$	(1,111,169	)		$	(1,290,848	)

Dividends paid during the three months ended September 30, 2025 and 2024:

The following is a summary of distributions declared per share of our Series D Preferred Stock for the three months ended September 30, 2025 and 2024.

Series D Preferred Stock

Month		2025				2024
		Distributions Declared				Distributions Declared
July		$	0.19531			$	0.19531
August			0.19531				0.19531
September			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 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 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, 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
Consolidated Balance Sheets

		September 30,				December 31,
		2025				2024
		(unaudited)
ASSETS
Real estate assets and lease intangibles:
Land		$	16,625,237			$	15,983,323
Buildings and improvements			105,024,265				102,862,977
Tenant improvements			17,338,795				16,488,066
Lease intangibles			3,475,531				3,776,654
Real estate assets and lease intangibles held for investment, cost			142,463,828				139,111,020
Accumulated depreciation and amortization			(36,622,641	)			(33,700,262	)
Real estate assets and lease intangibles held for investment, net			105,841,187				105,410,758
Real estate assets held for sale, net			7,440,774				22,185,742
Real estate assets, net			113,281,961				127,596,500
Other assets:
Cash, cash equivalents and restricted cash			8,002,915				8,036,496
Deferred leasing costs, net			1,378,568				1,666,135
Goodwill			1,389,000				1,389,000
Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9)			7,515				206,177
Deferred tax asset			298,645				298,645
Other assets, net (see Note 6)			3,450,281				3,376,697
Total other assets			14,526,924				14,973,150
TOTAL ASSETS (1)		$	127,808,885			$	142,569,650
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	83,277,135			$	80,977,448
Mortgage notes payable related to properties held for sale, net			10,442,278				21,116,646
Mortgage notes payable, total net			93,719,413				102,094,094
Accounts payable and accrued liabilities			3,043,157				3,290,170
Accrued real estate taxes			1,457,629				1,972,477
Dividends payable			190,393				194,784
Lease liability, net			46,373				64,345
Below-market leases, net			4,560				8,625
Total liabilities			98,461,525				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; 974,823 shares issued and outstanding (liquidation preference $25.00 per share) as of September 30, 2025 and 997,082 shares issued and outstanding as of December 31, 2024			9,748				9,971
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,230,601 shares and 1,283,432 shares were issued and outstanding as of September 30, 2025 and December 31, 2024, respectively			12,306				128,343
Additional paid-in capital			186,477,510				185,770,842
Dividends and accumulated losses			(165,400,881	)			(159,374,010	)
Total stockholders' equity before noncontrolling interest			21,098,683				26,535,146
Noncontrolling interest			8,248,677				8,410,009
Total equity			29,347,360				34,945,155
TOTAL LIABILITIES AND EQUITY		$	127,808,885			$	142,569,650

 

Presidio Property Trust, Inc. and Subsidiaries
Consolidated Statements of Operations

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2025				2024				2025				2024
Revenues:
Rental income		$	4,108,866			$	4,640,816			$	12,423,048			$	13,754,740
Fees and other income			87,276				82,558				277,018				345,236
Total revenue			4,196,142				4,723,374				12,700,066				14,099,976
Costs and expenses:
Rental operating costs			1,534,563				1,598,015				4,609,810				4,654,087
General and administrative			1,450,061				1,629,919				4,335,697				5,917,286
Depreciation and amortization			1,235,640				1,455,882				3,691,435				4,158,270
Impairment of goodwill and real estate assets			82,913				697,146				4,427,245				893,939
Total costs and expenses			4,303,177				5,380,962				17,064,187				15,623,582
Other income (expense):
Interest expense - mortgage notes			(1,499,075	)			(1,473,528	)			(4,487,415	)			(4,514,579	)
Interest and other income, net			5,263				5,263				15,618				15,116
Gain on sales of real estate, net			300,975				361,151				5,078,302				3,191,149
Net loss in Conduit Pharmaceuticals marketable securities (see Note 9)			(212	)			(3,932,770	)			(184,672	)			(17,821,437	)
Income tax expense (benefit)			14,871				(6,911	)			(13,630	)			(167,496	)
Total other income (expense), net			(1,178,178	)			(5,046,795	)			408,203				(19,297,247	)
Net loss			(1,285,213	)			(5,704,383	)			(3,955,918	)			(20,820,853	)
Less: Income attributable to noncontrolling interests			(5,635	)			(355,153	)			(346,103	)			(2,328,386	)
Net loss attributable to Presidio Property Trust, Inc. stockholders		$	(1,290,848	)		$	(6,059,536	)		$	(4,302,021	)		$	(23,149,239	)
Less: Series D Preferred Stock dividends			(571,179	)			(585,930	)			(1,724,850	)			(1,651,293	)
Net loss attributable to Presidio Property Trust, Inc. common stockholders		$	(1,862,027	)		$	(6,645,466	)		$	(6,026,871	)		$	(24,800,532	)
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted		$	(1.53	)		$	(5.33	)		$	(4.95	)		$	(20.00	)
Weighted average number of common shares outstanding - basic & dilutive			1,215,943				1,247,657				1,216,873				1,239,980

 

FFO AND CORE FFO RECONCILIATION

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2025				2024				2025				2024
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	(1,862,027	)		$	(6,645,466	)		$	(6,026,871	)		$	(24,800,532	)
Adjustments:
Income attributable to noncontrolling interests			5,635				355,153				346,103				2,328,386
Depreciation and amortization			1,235,640				1,455,882				3,691,435				4,158,270
Amortization of above and below market leases, net			(1,244	)			(1,244	)			(3,509	)			(3,731	)
Impairment of real estate assets			82,913				697,146				4,427,245				893,939
Net change in marketable securities			212				3,932,770				184,672				17,821,997
Loss (gain) on sale of real estate assets, net			(300,975	)			(361,151	)			(5,078,302	)			(3,191,149	)
FFO		$	(839,846	)		$	(566,910	)		$	(2,459,227	)		$	(2,792,820	)
Restricted stock compensation			287,447				347,021				831,823				1,232,050
Cost associated with Zuma Capital Management			-				469,552				-				565,534
Core FFO		$	(552,399	)		$	249,663			$	(1,627,404	)		$	(995,236	)
Weighted average number of common shares outstanding - basic and diluted			1,215,943				1,247,657				1,216,873				1,239,980
Core FFO / Wgt Avg Share		$	(0.45	)		$	0.20			$	(1.34	)		$	(0.80	)
Quarterly Dividends / Share		$	-			$	-			$	-			$	-

SOURCE: Presidio Property Trust

View the original press release on ACCESS Newswire

FAQ

What was Presidio Property Trust's net loss for Q3 2025 (SQFT)?

Net loss attributable to common stockholders was approximately $1.9 million for Q3 2025.

How did Presidio's Q3 2025 revenue (SQFT) compare year-over-year?

Total revenues were about $4.2 million in Q3 2025 versus $4.7 million in Q3 2024.

What happened to Presidio's real estate assets and debt in Q3 2025 (SQFT)?

Net real estate assets fell to $113.3M from $131.4M; mortgage notes payable totaled $94.6M.

What were Presidio's FFO and Core FFO for Q3 2025 (SQFT)?

FFO was approximately $(0.6M); Core FFO decreased to $(0.3M) from $0.2M.

Did Presidio complete any property sales in Q3 2025 (SQFT)?

Yes — the company sold three model homes for approximately $1.5M, recognizing a gain of about $19,685.

How did operating expenses change for Presidio in Q3 2025 (SQFT)?

General and administrative expenses decreased by about $0.2M, reducing G&A as a percent of revenue to 32.4%.