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

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

93,574

2,372,147

1,035,923

3,501,644

607,222

64,450

7,103

15,723

87,276

93,574

3,043,819

1,043,026

15,723

4,196,142

4,828

1,627,174

48,743

(146,182

)

1,534,563

88,746

1,416,645

994,283

161,905

2,661,579

19,685

(82,913

)

(82,913

)

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

93,574

2,979,369

1,035,923

4,108,866

64,450

7,103

15,723

87,276

93,574

3,043,819

1,043,026

15,723

4,196,142

4,828

1,627,174

48,743

(146,182

)

1,534,563

245

174,265

1,275,551

1,450,061

22,928

987,602

223,876

1,234

1,235,640

82,913

27,756

2,615,021

529,797

1,130,603

4,303,177

(39,762

)

(932,226

)

(525,755

)

(1,332

)

(1,499,075

)

5,255

5,263

(212

)

(212

)

281,290

19,685

300,975

14,871

241,528

(932,226

)

(491,191

)

3,711

(1,178,178

)

307,346

(503,428

)

22,038

(1,111,169

)

(1,285,213

)

(9,777

)

4,142

(5,635

)

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

2025

2024

Distributions Declared

0.19531

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)

16,625,237

15,983,323

105,024,265

102,862,977

17,338,795

16,488,066

3,475,531

3,776,654

142,463,828

139,111,020

(36,622,641

)

(33,700,262

)

105,841,187

105,410,758

7,440,774

22,185,742

113,281,961

127,596,500

8,002,915

8,036,496

1,378,568

1,666,135

1,389,000

7,515

206,177

298,645

3,450,281

3,376,697

14,526,924

14,973,150

127,808,885

142,569,650

83,277,135

80,977,448

10,442,278

21,116,646

93,719,413

102,094,094

3,043,157

3,290,170

1,457,629

1,972,477

190,393

194,784

46,373

64,345

4,560

8,625

98,461,525

107,624,495

9,748

9,971

12,306

128,343

186,477,510

185,770,842

(165,400,881

)

(159,374,010

)

21,098,683

26,535,146

8,248,677

8,410,009

29,347,360

34,945,155

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

4,108,866

4,640,816

12,423,048

13,754,740

87,276

82,558

277,018

345,236

4,196,142

4,723,374

12,700,066

14,099,976

1,534,563

1,598,015

4,609,810

4,654,087

1,450,061

1,629,919

4,335,697

5,917,286

1,235,640

1,455,882

3,691,435

4,158,270

82,913

697,146

4,427,245

893,939

4,303,177

5,380,962

17,064,187

15,623,582

(1,499,075

)

(1,473,528

)

(4,487,415

)

(4,514,579

)

5,263

15,618

15,116

300,975

361,151

5,078,302

3,191,149

(212

)

(3,932,770

)

(184,672

)

(17,821,437

)

14,871

(6,911

)

(13,630

)

(167,496

)

(1,178,178

)

(5,046,795

)

408,203

(19,297,247

)

(1,285,213

)

(5,704,383

)

(3,955,918

)

(20,820,853

)

(5,635

)

(355,153

)

(346,103

)

(2,328,386

)

(1,290,848

)

(6,059,536

)

(4,302,021

)

(23,149,239

)

(571,179

)

(585,930

)

(1,724,850

)

(1,651,293

)

(1,862,027

)

(6,645,466

)

(6,026,871

)

(24,800,532

)

(1.53

)

(5.33

)

(4.95

)

(20.00

)

1,215,943

1,247,657

1,216,873

1,239,980

FFO AND CORE FFO RECONCILIATION

2025

2024

2025

2024

(1,862,027

)

(6,645,466

)

(6,026,871

)

(24,800,532

)

5,635

355,153

346,103

2,328,386

1,235,640

1,455,882

3,691,435

4,158,270

(1,244

)

(1,244

)

(3,509

)

(3,731

)

82,913

697,146

4,427,245

893,939

212

3,932,770

184,672

17,821,997

(300,975

)

(361,151

)

(5,078,302

)

(3,191,149

)

(839,846

)

(566,910

)

(2,459,227

)

(2,792,820

)

287,447

347,021

831,823

1,232,050

469,552

565,534

(552,399

)

249,663

(1,627,404

)

(995,236

)

1,215,943

1,247,657

1,216,873

1,239,980

(0.45

)

0.20

(1.34

)

(0.80

)

SOURCE: Presidio Property Trust