{"success":true,"data":{"pressRelease":{"id":"37044","rtpr_id":"nACSVBr2Pa","ticker":"SQFT","exchange":"NASDAQ","all_tickers":["SQFT","SQFTW"],"title":"Presidio Property Trust, Inc. Announces Earnings for the Quarter Ended March 31, 2026 ","author":"ACCESSWIRE","published_at":"2026-05-15T22:00:57.156Z","article_body":"SAN DIEGO, CA / ACCESS Newswire (https://www.accessnewswire.com/) / May 15,\n2026 / Presidio Property Trust, Inc. (Nasdaq:SQFT, SQFTP, SQFTW) (the\n\"Company\"), an internally managed, diversified real estate investment trust\n(\"REIT\"), today reported earnings for its quarter ended March 31, 2026.\n\n\"We continue to seek suitable model home investment opportunities with\nbuilders in market areas we believe have upside potential. Those opportunities\nin market areas with strong employment in technology, artificial intelligence\n(AI), and industrial automation are of particular interest,\" said Steve\nHightower, President of the Model Home Division.\n\n\"Our strategic evaluation of our commercial portfolio continues, as we focus\non maximizing value through leasing and consider future sell/hold/buy\npotential. As with 2025, our tenant retention through the First Quarter has\nbeen excellent\" said Gary Katz, the Company's Chief Investment Officer.\n\nThe Quarter Ended March 31, 2026, Financial Results\n\nNet loss attributable to the Company's common stockholders for the three\nmonths ended March 31, 2026 was approximately $(129,632), or $(0.10) per basic\nand diluted share, compared to a net income of approximately $1.7 million, or\n$1.31 per basic and diluted share for the three months ended March 31, 2025.\nThe change in net income attributable to the Company's common stockholders was\na result of:\n\n * \n * \n * \n * \n * \n * \n\nFFO (non-GAAP) totaled approximately ($2.1 million) and ($1.2 million) for the\nthree months ended March 31, 2026 and 2025, respectively. A reconciliation of\nFFO to net loss, the most directly comparable GAAP financial measure, is\nattached to this press release. However, because FFO excludes depreciation and\namortization as well as the changes in the value of the Company's properties\nthat result from use or market conditions, each of which have real economic\neffects and could materially impact the Company's results from operations, the\nutility of FFO as a measure of the Company's performance is limited.\n\nWe believe Core FFO (non-GAAP) provides a useful metric in comparing\noperations between reporting periods and in assessing the sustainability of\nour ongoing operating performance. Core FFO decreased by about $0.9 million,\nfrom approximately ($1.0 million) for the three months ended March 31, 2025,\nto approximately ($1.9 million) for the three months ended March 31, 2026. A\nreconciliation of Core FFO to net income, the most directly comparable GAAP\nfinancial measure, is attached to this press release.\n\nAcquisitions during the three months ended March 31, 2026:\n\n * \n\nDispositions during the three months ended March 31, 2026:\n\n * \n * \n\nSegment Income during the three months ended March 31, 2026:\n\nThe following tables compare the Company's segment activity and NOI and\nadjusted NOI for Model Home income to its results of operations and financial\nposition as of and for the three months ended March 31, 2026. The line items\nlisted in the below NOI tables include the significant expense considered by\nthe CODM for cash allocations on future investments. The Other Non-Segment &\nConsolidating Items represent corporate activity, the investment in Conduit\nPharmaceutical, and other eliminating items for consolidation. The information\nfor Corporate and Other are presented to reconcile back to the consolidated\nstatement of operations, but is not considered a reportable segment. This\nincludes the loss on Conduit marketable securities.\n\nThe following tables compare the Company's segment activity to its results of\noperations and financial position as of and for the three months ended March\n31, 2026:\n\n For the Three Months Ended March 31, 2026 \n \n Retail Office/Industrial Model Homes Corporate and Other Total \n \n Rental revenue $ 93,574 $ 2,234,494 $ 919,890 $ - $ 3,247,958 \n Recovery revenue - 436,086 - - 436,086 \n Other operating revenue - 82,800 5,534 422 88,756 \n Total revenues 93,574 2,753,380 925,424 422 3,772,800 \n \n Rental operating costs 4,832 1,630,837 48,877 (140,105 ) 1,544,441 \n Net Operating Income (NOI) 88,742 1,122,543 876,547 140,527 2,228,359 \n \n Gain on Sale - Model Homes - - 172,096 - 172,096 \n Impairment of Model Homes - - (75,639 ) - (75,639 ) \n \n Adjusted NOI $ 88,742 $ 1,122,543 $ 973,004 $ 140,527 $ 2,324,816 \n\nThe CODM reviews on a regular basis the GAAP performance of each segment,\nincluding the significant segment expenses reported for GAAP shown in the\ntable below. Our significant segment expenses include consolidated expense\ncategories presented in our consolidated statements of operations, as well as\nrental operating costs. This information is provided to the CODM and factors\ninto the CODM's decision making for company-wide strategy. The following\ntables compare the Company's segment activity to its results of GAAP\noperations and financial position as of and for the three months ended March\n31, 2026. The information for Corporate and Other are presented to reconcile\nback to the consolidated statement of operations, but is not considered a\nreportable segment as noted above.\n\n For the Three Months Ended March 31, 2026 \n \n Retail Office/Industrial Model Homes Corporate and Other Total \n Revenues: \n Rental income $ 93,574 $ 2,670,580 $ 919,890 $ - $ 3,684,044 \n Fees and other income - 82,800 5,534 422 88,756 \n Total revenue 93,574 2,753,380 925,424 422 3,772,800 \n Costs and expenses: \n Rental operating costs 4,832 1,630,837 48,877 (140,105 ) 1,544,441 \n General and administrative - 17,499 226,882 1,429,442 1,673,823 \n Depreciation and amortization 22,928 784,276 191,292 473 998,969 \n Impairment of goodwill and real estate assets - 448,734 75,639 - 524,373 \n Total costs and expenses 27,760 2,881,346 542,690 1,289,810 4,741,606 \n Other income (expense): \n Interest expense - mortgage notes (43,117 ) (1,543,083 ) (462,558 ) (1,316 ) (2,050,074 ) \n Interest and other income, net - - 9 5,140 5,149 \n Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) - - - 1,985 1,985 \n Gain on sales of real estate, net - - 172,096 - 172,096 \n Gain on disposition of assets and liabilities, net - 3,416,501 - - 3,416,501 \n Income tax (expense) benefit - - (15,657 ) (2,400 ) (18,057 ) \n Total other income (expense), net (43,117 ) 1,873,418 (306,110 ) 3,409 1,527,600 \n Net income (loss) 22,697 1,745,452 76,624 (1,285,979 ) 558,794 \n Less: Income attributable to noncontrolling interests - 2,053 (119,938 ) - (117,885 ) \n Net income (loss) attributable to Presidio Property Trust, Inc. stockholders $ 22,697 $ 1,747,505 $ (43,314 ) $ (1,285,979 ) $ 440,909 \n(https://app.accessnewswire.com/imagelibrary/b62d8598-0d02-4838-8fd9-ea3636826ba5/1167572/picture1.png)\nSubsequent Real Estate Activity:\n\nAs of April 24, 2026, the Company amended its agreement with Origin Bank (the\nlender) through its partnership with Dubose Model Homes #207 LP. The terms of\nthe new amendment decrease the floor interest rate by 1.5 percentage points\nfrom its original value while requiring that the Company and DMH#207 LP\nmaintain liquid assets of $200,000 on a quarterly basis, starting March 31,\n2026.\n\nAbout Presidio Property Trust\n\nPresidio is an internally managed, diversified REIT with holdings in model\nhome properties which are triple-net leased to homebuilders, office,\nindustrial, and retail properties. Presidio's model homes are leased to\nhomebuilders located primarily in the sun belt states. Presidio's office,\nindustrial, and retail properties are located primarily in Colorado, with\nproperties also located in Maryland, North Dakota, Texas, and Southern\nCalifornia. For more information on Presidio, please visit Presidio's website\nat https://www.PresidioPT.com.\n\nDefinitions\n\nNon-GAAP Financial Measures\n\nFunds from Operations (\"FFO\") - The Company evaluates performance based on\nFunds From Operations, which we refer to as FFO, as management believes that\nFFO represents the most accurate measure of activity and is the basis for\ndistributions paid to equity holders. The Company defines FFO as net income or\nloss (computed in accordance with GAAP), excluding gains (or losses) from\nsales of property, hedge ineffectiveness, acquisition costs of newly acquired\nproperties that are not capitalized and lease acquisition costs that are not\ncapitalized plus depreciation and amortization, including amortization of\nacquired above and below market lease intangibles and impairment charges on\nproperties or investments in non-consolidated REITs, and after adjustments to\nexclude equity in income or losses from, and, to include the proportionate\nshare of FFO from, non-consolidated REITs.\n\nHowever, because FFO excludes depreciation and amortization as well as the\nchanges in the value of the Company's properties that result from use or\nmarket conditions, each of which have real economic effects and could\nmaterially impact the Company's results from operations, the utility of FFO as\na measure of the Company's performance is limited. In addition, other REITs\nmay not calculate FFO in accordance with the NAREIT definition as the Company\ndoes, and, accordingly, the Company's FFO may not be comparable to other\nREITs' FFO. Accordingly, FFO should be considered only as a supplement to net\nincome as a measure of the Company's performance.\n\nCore Funds from Operations (\"Core FFO\") - We calculate Core FFO by using FFO\nas defined by NAREIT and adjusting for certain other non-core items. We\nexclude from our Core FFO calculation acquisition costs, loss on early\nextinguishment of debt, changes in the fair value of the earn-out, changes in\nfair value of contingent consideration, non-cash warrant dividends, other\nnon-recuring expenses, and the amortization of stock-based compensation.\n\nWe believe Core FFO provides a useful metric in comparing operations between\nreporting periods and in assessing the sustainability of our ongoing operating\nperformance. Other equity REITs may calculate Core FFO differently or not at\nall, and, accordingly, the Company's Core FFO may not be comparable to such\nother REITs' Core FFO.\n\nCautionary Note Regarding Forward-Looking Statements\n\nThis press release contains statements that are \"forward-looking statements\"\nwithin the meaning of the Private Securities Litigation Reform Act of 1995,\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, and other federal securities\nlaws. Forward-looking statements are statements that are not historical,\nincluding statements regarding management's intentions, beliefs, expectations,\nrepresentations, plans or predictions of the future, and are typically\nidentified by such words as \"believe,\" \"expect,\" \"anticipate,\" \"intend,\"\n\"estimate,\" \"may,\" \"will,\" \"should\" and \"could.\" Because such statements\ninclude risks, uncertainties and contingencies, actual results may differ\nmaterially from those expressed or implied by such forward-looking statements.\nThese forward-looking statements are based upon the Company's present\nexpectations, but these statements are not guaranteed to occur. Except as\nrequired by law, the Company disclaims any obligation to publicly update or\nrevise any forward-looking statement to reflect changes in underlying\nassumptions or factors, of new information, data or methods, future events or\nother changes. Investors should not place undue reliance upon forward-looking\nstatements. For further discussion of the factors that could affect outcomes,\nplease refer to the \"Risk Factors\" section of the Company's documents filed\nwith the SEC, copies of which are available on the SEC's website, www.sec.gov.\n\nInvestor Relations Contact:\n\nPresidio Property Trust, Inc.\nLowell Hartkorn, Investor Relations\nLHartkorn@presidiopt.com\nTelephone: (760) 471-8536 x1244\n\nPresidio Property Trust, Inc. and Subsidiaries\nConsolidated Balance Sheet\n\n March 31, December 31, \n 2026 2025 \n (unaudited) \n ASSETS \n Real estate assets and lease intangibles: \n Land $ 13,789,653 $ 16,390,250 \n Buildings and improvements 82,684,544 101,878,107 \n Tenant improvements 11,435,230 17,645,103 \n Lease intangibles 1,400,602 3,467,798 \n Real estate assets and lease intangibles held for investment, cost 109,310,029 139,381,258 \n Accumulated depreciation and amortization (26,266,550 ) (37,536,809 ) \n Real estate assets and lease intangibles held for investment, net 83,043,479 101,844,449 \n Real estate assets held for sale, net 17,451,127 6,805,255 \n Real estate assets, net 100,494,606 108,649,704 \n Other assets: \n Cash, cash equivalents and restricted cash 5,171,903 7,422,359 \n Deferred leasing costs, net 1,230,452 1,340,853 \n Goodwill 1,317,000 1,317,000 \n Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9) 5,885 3,900 \n Deferred tax asset 223,388 223,388 \n Other assets, net (see Note 6) 2,803,541 3,095,670 \n Total other assets 10,752,169 13,403,170 \n TOTAL ASSETS (1) $ 111,246,775 $ 122,052,874 \n LIABILITIES AND EQUITY \n Liabilities: \n Mortgage notes payable, net $ 64,160,535 $ 81,936,586 \n Mortgage notes payable related to real estate assets held for sale, net 17,473,032 10,137,781 \n Mortgage notes payable, total net 81,633,567 92,074,367 \n Accounts payable and accrued liabilities 3,044,512 3,302,187 \n Accrued real estate taxes 1,378,644 1,785,029 \n Dividends payable - 190,220 \n Lease liability, net 33,756 40,108 \n Below-market leases, net 2,073 3,316 \n Total liabilities 86,092,552 97,395,227 \n \n Commitments and contingencies (see Note 10) \n Equity: \n Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 973,736 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2026 and 973,736 shares issued and outstanding as of December 31, 2025 9,737 9,737 \n Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,314,159 shares and 1,314,159 shares were issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 13,142 13,142 \n Additional paid-in capital 186,954,022 186,762,388 \n Dividends and accumulated losses (169,504,393 ) (169,945,302 ) \n Total stockholders' equity before noncontrolling interest 17,472,508 16,839,965 \n Noncontrolling interest 7,681,715 7,817,682 \n Total equity 25,154,223 24,657,647 \n TOTAL LIABILITIES AND EQUITY $ 111,246,775 $ 122,052,874 \n\nPresidio Property Trust, Inc. and Subsidiaries\nConsolidated Statements of Operations\n\n For the Three Months Ended March 31, \n 2026 2025 \n Revenues: \n Rental income $ 3,684,044 $ 4,032,429 \n Fees and other income 88,756 92,755 \n Total revenue 3,772,800 4,125,184 \n Costs and expenses: \n Rental operating costs 1,544,441 1,612,642 \n General and administrative 1,673,823 1,661,978 \n Depreciation and amortization 998,969 1,244,104 \n Impairment of goodwill and real estate assets 524,373 26,943 \n Total costs and expenses 4,741,606 4,545,667 \n Other income (expense): \n Interest expense - mortgage notes (2,050,074 ) (1,510,470 ) \n Net gain (loss) in Conduit Pharmaceuticals marketable securities (see Note 9) 1,985 (176,658 ) \n Interest and other income, net 5,149 5,149 \n Gain on sales of real estate, net 172,096 4,453,968 \n Gain on disposition of assets and liabilities, net 3,416,501 - \n Income tax (expense) benefit (18,057 ) 25,409 \n Total other income (expense), net 1,527,600 2,797,398 \n Net income 558,794 2,376,915 \n Less: Income attributable to noncontrolling interests (117,885 ) (111,563 ) \n Net income attributable to Presidio Property Trust, Inc. stockholders $ 440,909 $ 2,265,352 \n Less: Series D Preferred Stock declared dividends - (579,575 ) \n Less: Series D Preferred Stock undeclared dividends in arrears (570,541 ) - \n Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (129,632 ) $ 1,685,777 \n \n Net (loss) income per share attributable to Presidio Property Trust, Inc. common stockholders: \n Basic & Diluted $ (0.10 ) $ 1.31 \n \n Weighted average number of common shares outstanding - basic & dilutive 1,314,159 1,283,432 \n\nFFO AND CORE FFO RECONCILIATION\n\n For the Three Months Ended March 31, \n 2026 2025 \n Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (129,632 ) $ 1,685,777 \n Adjustments: \n Income attributable to noncontrolling interests 117,885 111,563 \n Depreciation and amortization 998,969 1,244,104 \n Amortization of above and below market leases, net (1,244 ) (1,022 ) \n Impairment of real estate assets 524,373 26,943 \n Loss on marketable securities (1,985 ) 176,658 \n Net gain on sale of real estate assets (172,096 ) (4,453,968 ) \n Gain on extinguishment of debt (3,416,501 ) - \n FFO $ (2,080,231 ) $ (1,209,945 ) \n Stock Based Compensation 191,633 229,502 \n Core FFO $ (1,888,598 ) $ (980,443 ) \n \n Weighted average number of common shares outstanding - basic and diluted 1,314,159 1,283,432 \n \n Core FFO / Wgt Avg Share $ (1.44 ) $ (0.76 ) \n\nSOURCE: Presidio Property Trust\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/real-estate/presidio-property-trust-inc.-announces-earnings-for-the-quarter-ended-march-31-2026-1167572)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSVBr2Pa","title":"Presidio Property Trust, Inc. Announces Earnings for the Quarter Ended March 31, 2026 ","author":"ACCESSWIRE","ticker":"SQFT","created":"2026-05-15T22:00:57.156Z","tickers":["SQFT","SQFTW"],"exchange":"NASDAQ","article_body":"SAN DIEGO, CA / ACCESS Newswire (https://www.accessnewswire.com/) / May 15,\n2026 / Presidio Property Trust, Inc. (Nasdaq:SQFT, SQFTP, SQFTW) (the\n\"Company\"), an internally managed, diversified real estate investment trust\n(\"REIT\"), today reported earnings for its quarter ended March 31, 2026.\n\n\"We continue to seek suitable model home investment opportunities with\nbuilders in market areas we believe have upside potential. Those opportunities\nin market areas with strong employment in technology, artificial intelligence\n(AI), and industrial automation are of particular interest,\" said Steve\nHightower, President of the Model Home Division.\n\n\"Our strategic evaluation of our commercial portfolio continues, as we focus\non maximizing value through leasing and consider future sell/hold/buy\npotential. As with 2025, our tenant retention through the First Quarter has\nbeen excellent\" said Gary Katz, the Company's Chief Investment Officer.\n\nThe Quarter Ended March 31, 2026, Financial Results\n\nNet loss attributable to the Company's common stockholders for the three\nmonths ended March 31, 2026 was approximately $(129,632), or $(0.10) per basic\nand diluted share, compared to a net income of approximately $1.7 million, or\n$1.31 per basic and diluted share for the three months ended March 31, 2025.\nThe change in net income attributable to the Company's common stockholders was\na result of:\n\n * \n * \n * \n * \n * \n * \n\nFFO (non-GAAP) totaled approximately ($2.1 million) and ($1.2 million) for the\nthree months ended March 31, 2026 and 2025, respectively. A reconciliation of\nFFO to net loss, the most directly comparable GAAP financial measure, is\nattached to this press release. However, because FFO excludes depreciation and\namortization as well as the changes in the value of the Company's properties\nthat result from use or market conditions, each of which have real economic\neffects and could materially impact the Company's results from operations, the\nutility of FFO as a measure of the Company's performance is limited.\n\nWe believe Core FFO (non-GAAP) provides a useful metric in comparing\noperations between reporting periods and in assessing the sustainability of\nour ongoing operating performance. Core FFO decreased by about $0.9 million,\nfrom approximately ($1.0 million) for the three months ended March 31, 2025,\nto approximately ($1.9 million) for the three months ended March 31, 2026. A\nreconciliation of Core FFO to net income, the most directly comparable GAAP\nfinancial measure, is attached to this press release.\n\nAcquisitions during the three months ended March 31, 2026:\n\n * \n\nDispositions during the three months ended March 31, 2026:\n\n * \n * \n\nSegment Income during the three months ended March 31, 2026:\n\nThe following tables compare the Company's segment activity and NOI and\nadjusted NOI for Model Home income to its results of operations and financial\nposition as of and for the three months ended March 31, 2026. The line items\nlisted in the below NOI tables include the significant expense considered by\nthe CODM for cash allocations on future investments. The Other Non-Segment &\nConsolidating Items represent corporate activity, the investment in Conduit\nPharmaceutical, and other eliminating items for consolidation. The information\nfor Corporate and Other are presented to reconcile back to the consolidated\nstatement of operations, but is not considered a reportable segment. This\nincludes the loss on Conduit marketable securities.\n\nThe following tables compare the Company's segment activity to its results of\noperations and financial position as of and for the three months ended March\n31, 2026:\n\n For the Three Months Ended March 31, 2026 \n \n Retail Office/Industrial Model Homes Corporate and Other Total \n \n Rental revenue $ 93,574 $ 2,234,494 $ 919,890 $ - $ 3,247,958 \n Recovery revenue - 436,086 - - 436,086 \n Other operating revenue - 82,800 5,534 422 88,756 \n Total revenues 93,574 2,753,380 925,424 422 3,772,800 \n \n Rental operating costs 4,832 1,630,837 48,877 (140,105 ) 1,544,441 \n Net Operating Income (NOI) 88,742 1,122,543 876,547 140,527 2,228,359 \n \n Gain on Sale - Model Homes - - 172,096 - 172,096 \n Impairment of Model Homes - - (75,639 ) - (75,639 ) \n \n Adjusted NOI $ 88,742 $ 1,122,543 $ 973,004 $ 140,527 $ 2,324,816 \n\nThe CODM reviews on a regular basis the GAAP performance of each segment,\nincluding the significant segment expenses reported for GAAP shown in the\ntable below. Our significant segment expenses include consolidated expense\ncategories presented in our consolidated statements of operations, as well as\nrental operating costs. This information is provided to the CODM and factors\ninto the CODM's decision making for company-wide strategy. The following\ntables compare the Company's segment activity to its results of GAAP\noperations and financial position as of and for the three months ended March\n31, 2026. The information for Corporate and Other are presented to reconcile\nback to the consolidated statement of operations, but is not considered a\nreportable segment as noted above.\n\n For the Three Months Ended March 31, 2026 \n \n Retail Office/Industrial Model Homes Corporate and Other Total \n Revenues: \n Rental income $ 93,574 $ 2,670,580 $ 919,890 $ - $ 3,684,044 \n Fees and other income - 82,800 5,534 422 88,756 \n Total revenue 93,574 2,753,380 925,424 422 3,772,800 \n Costs and expenses: \n Rental operating costs 4,832 1,630,837 48,877 (140,105 ) 1,544,441 \n General and administrative - 17,499 226,882 1,429,442 1,673,823 \n Depreciation and amortization 22,928 784,276 191,292 473 998,969 \n Impairment of goodwill and real estate assets - 448,734 75,639 - 524,373 \n Total costs and expenses 27,760 2,881,346 542,690 1,289,810 4,741,606 \n Other income (expense): \n Interest expense - mortgage notes (43,117 ) (1,543,083 ) (462,558 ) (1,316 ) (2,050,074 ) \n Interest and other income, net - - 9 5,140 5,149 \n Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) - - - 1,985 1,985 \n Gain on sales of real estate, net - - 172,096 - 172,096 \n Gain on disposition of assets and liabilities, net - 3,416,501 - - 3,416,501 \n Income tax (expense) benefit - - (15,657 ) (2,400 ) (18,057 ) \n Total other income (expense), net (43,117 ) 1,873,418 (306,110 ) 3,409 1,527,600 \n Net income (loss) 22,697 1,745,452 76,624 (1,285,979 ) 558,794 \n Less: Income attributable to noncontrolling interests - 2,053 (119,938 ) - (117,885 ) \n Net income (loss) attributable to Presidio Property Trust, Inc. stockholders $ 22,697 $ 1,747,505 $ (43,314 ) $ (1,285,979 ) $ 440,909 \n(https://app.accessnewswire.com/imagelibrary/b62d8598-0d02-4838-8fd9-ea3636826ba5/1167572/picture1.png)\nSubsequent Real Estate Activity:\n\nAs of April 24, 2026, the Company amended its agreement with Origin Bank (the\nlender) through its partnership with Dubose Model Homes #207 LP. The terms of\nthe new amendment decrease the floor interest rate by 1.5 percentage points\nfrom its original value while requiring that the Company and DMH#207 LP\nmaintain liquid assets of $200,000 on a quarterly basis, starting March 31,\n2026.\n\nAbout Presidio Property Trust\n\nPresidio is an internally managed, diversified REIT with holdings in model\nhome properties which are triple-net leased to homebuilders, office,\nindustrial, and retail properties. Presidio's model homes are leased to\nhomebuilders located primarily in the sun belt states. Presidio's office,\nindustrial, and retail properties are located primarily in Colorado, with\nproperties also located in Maryland, North Dakota, Texas, and Southern\nCalifornia. For more information on Presidio, please visit Presidio's website\nat https://www.PresidioPT.com.\n\nDefinitions\n\nNon-GAAP Financial Measures\n\nFunds from Operations (\"FFO\") - The Company evaluates performance based on\nFunds From Operations, which we refer to as FFO, as management believes that\nFFO represents the most accurate measure of activity and is the basis for\ndistributions paid to equity holders. The Company defines FFO as net income or\nloss (computed in accordance with GAAP), excluding gains (or losses) from\nsales of property, hedge ineffectiveness, acquisition costs of newly acquired\nproperties that are not capitalized and lease acquisition costs that are not\ncapitalized plus depreciation and amortization, including amortization of\nacquired above and below market lease intangibles and impairment charges on\nproperties or investments in non-consolidated REITs, and after adjustments to\nexclude equity in income or losses from, and, to include the proportionate\nshare of FFO from, non-consolidated REITs.\n\nHowever, because FFO excludes depreciation and amortization as well as the\nchanges in the value of the Company's properties that result from use or\nmarket conditions, each of which have real economic effects and could\nmaterially impact the Company's results from operations, the utility of FFO as\na measure of the Company's performance is limited. In addition, other REITs\nmay not calculate FFO in accordance with the NAREIT definition as the Company\ndoes, and, accordingly, the Company's FFO may not be comparable to other\nREITs' FFO. Accordingly, FFO should be considered only as a supplement to net\nincome as a measure of the Company's performance.\n\nCore Funds from Operations (\"Core FFO\") - We calculate Core FFO by using FFO\nas defined by NAREIT and adjusting for certain other non-core items. We\nexclude from our Core FFO calculation acquisition costs, loss on early\nextinguishment of debt, changes in the fair value of the earn-out, changes in\nfair value of contingent consideration, non-cash warrant dividends, other\nnon-recuring expenses, and the amortization of stock-based compensation.\n\nWe believe Core FFO provides a useful metric in comparing operations between\nreporting periods and in assessing the sustainability of our ongoing operating\nperformance. Other equity REITs may calculate Core FFO differently or not at\nall, and, accordingly, the Company's Core FFO may not be comparable to such\nother REITs' Core FFO.\n\nCautionary Note Regarding Forward-Looking Statements\n\nThis press release contains statements that are \"forward-looking statements\"\nwithin the meaning of the Private Securities Litigation Reform Act of 1995,\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, and other federal securities\nlaws. Forward-looking statements are statements that are not historical,\nincluding statements regarding management's intentions, beliefs, expectations,\nrepresentations, plans or predictions of the future, and are typically\nidentified by such words as \"believe,\" \"expect,\" \"anticipate,\" \"intend,\"\n\"estimate,\" \"may,\" \"will,\" \"should\" and \"could.\" Because such statements\ninclude risks, uncertainties and contingencies, actual results may differ\nmaterially from those expressed or implied by such forward-looking statements.\nThese forward-looking statements are based upon the Company's present\nexpectations, but these statements are not guaranteed to occur. Except as\nrequired by law, the Company disclaims any obligation to publicly update or\nrevise any forward-looking statement to reflect changes in underlying\nassumptions or factors, of new information, data or methods, future events or\nother changes. Investors should not place undue reliance upon forward-looking\nstatements. For further discussion of the factors that could affect outcomes,\nplease refer to the \"Risk Factors\" section of the Company's documents filed\nwith the SEC, copies of which are available on the SEC's website, www.sec.gov.\n\nInvestor Relations Contact:\n\nPresidio Property Trust, Inc.\nLowell Hartkorn, Investor Relations\nLHartkorn@presidiopt.com\nTelephone: (760) 471-8536 x1244\n\nPresidio Property Trust, Inc. and Subsidiaries\nConsolidated Balance Sheet\n\n March 31, December 31, \n 2026 2025 \n (unaudited) \n ASSETS \n Real estate assets and lease intangibles: \n Land $ 13,789,653 $ 16,390,250 \n Buildings and improvements 82,684,544 101,878,107 \n Tenant improvements 11,435,230 17,645,103 \n Lease intangibles 1,400,602 3,467,798 \n Real estate assets and lease intangibles held for investment, cost 109,310,029 139,381,258 \n Accumulated depreciation and amortization (26,266,550 ) (37,536,809 ) \n Real estate assets and lease intangibles held for investment, net 83,043,479 101,844,449 \n Real estate assets held for sale, net 17,451,127 6,805,255 \n Real estate assets, net 100,494,606 108,649,704 \n Other assets: \n Cash, cash equivalents and restricted cash 5,171,903 7,422,359 \n Deferred leasing costs, net 1,230,452 1,340,853 \n Goodwill 1,317,000 1,317,000 \n Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9) 5,885 3,900 \n Deferred tax asset 223,388 223,388 \n Other assets, net (see Note 6) 2,803,541 3,095,670 \n Total other assets 10,752,169 13,403,170 \n TOTAL ASSETS (1) $ 111,246,775 $ 122,052,874 \n LIABILITIES AND EQUITY \n Liabilities: \n Mortgage notes payable, net $ 64,160,535 $ 81,936,586 \n Mortgage notes payable related to real estate assets held for sale, net 17,473,032 10,137,781 \n Mortgage notes payable, total net 81,633,567 92,074,367 \n Accounts payable and accrued liabilities 3,044,512 3,302,187 \n Accrued real estate taxes 1,378,644 1,785,029 \n Dividends payable - 190,220 \n Lease liability, net 33,756 40,108 \n Below-market leases, net 2,073 3,316 \n Total liabilities 86,092,552 97,395,227 \n \n Commitments and contingencies (see Note 10) \n Equity: \n Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 973,736 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2026 and 973,736 shares issued and outstanding as of December 31, 2025 9,737 9,737 \n Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,314,159 shares and 1,314,159 shares were issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 13,142 13,142 \n Additional paid-in capital 186,954,022 186,762,388 \n Dividends and accumulated losses (169,504,393 ) (169,945,302 ) \n Total stockholders' equity before noncontrolling interest 17,472,508 16,839,965 \n Noncontrolling interest 7,681,715 7,817,682 \n Total equity 25,154,223 24,657,647 \n TOTAL LIABILITIES AND EQUITY $ 111,246,775 $ 122,052,874 \n\nPresidio Property Trust, Inc. and Subsidiaries\nConsolidated Statements of Operations\n\n For the Three Months Ended March 31, \n 2026 2025 \n Revenues: \n Rental income $ 3,684,044 $ 4,032,429 \n Fees and other income 88,756 92,755 \n Total revenue 3,772,800 4,125,184 \n Costs and expenses: \n Rental operating costs 1,544,441 1,612,642 \n General and administrative 1,673,823 1,661,978 \n Depreciation and amortization 998,969 1,244,104 \n Impairment of goodwill and real estate assets 524,373 26,943 \n Total costs and expenses 4,741,606 4,545,667 \n Other income (expense): \n Interest expense - mortgage notes (2,050,074 ) (1,510,470 ) \n Net gain (loss) in Conduit Pharmaceuticals marketable securities (see Note 9) 1,985 (176,658 ) \n Interest and other income, net 5,149 5,149 \n Gain on sales of real estate, net 172,096 4,453,968 \n Gain on disposition of assets and liabilities, net 3,416,501 - \n Income tax (expense) benefit (18,057 ) 25,409 \n Total other income (expense), net 1,527,600 2,797,398 \n Net income 558,794 2,376,915 \n Less: Income attributable to noncontrolling interests (117,885 ) (111,563 ) \n Net income attributable to Presidio Property Trust, Inc. stockholders $ 440,909 $ 2,265,352 \n Less: Series D Preferred Stock declared dividends - (579,575 ) \n Less: Series D Preferred Stock undeclared dividends in arrears (570,541 ) - \n Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (129,632 ) $ 1,685,777 \n \n Net (loss) income per share attributable to Presidio Property Trust, Inc. common stockholders: \n Basic & Diluted $ (0.10 ) $ 1.31 \n \n Weighted average number of common shares outstanding - basic & dilutive 1,314,159 1,283,432 \n\nFFO AND CORE FFO RECONCILIATION\n\n For the Three Months Ended March 31, \n 2026 2025 \n Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (129,632 ) $ 1,685,777 \n Adjustments: \n Income attributable to noncontrolling interests 117,885 111,563 \n Depreciation and amortization 998,969 1,244,104 \n Amortization of above and below market leases, net (1,244 ) (1,022 ) \n Impairment of real estate assets 524,373 26,943 \n Loss on marketable securities (1,985 ) 176,658 \n Net gain on sale of real estate assets (172,096 ) (4,453,968 ) \n Gain on extinguishment of debt (3,416,501 ) - \n FFO $ (2,080,231 ) $ (1,209,945 ) \n Stock Based Compensation 191,633 229,502 \n Core FFO $ (1,888,598 ) $ (980,443 ) \n \n Weighted average number of common shares outstanding - basic and diluted 1,314,159 1,283,432 \n \n Core FFO / Wgt Avg Share $ (1.44 ) $ (0.76 ) \n\nSOURCE: Presidio Property Trust\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/real-estate/presidio-property-trust-inc.-announces-earnings-for-the-quarter-ended-march-31-2026-1167572)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-05-15T22:00:57.231519901Z","server_sent_at_ms":1778882457231},"received_at":"2026-05-15T22:00:57.445Z","source_url":"https://www.accessnewswire.com/newsroom/en/real-estate/presidio-property-trust-inc.-announces-earnings-for-the-quarter-ended-march-31-2026-1167572"},"analysis":{"id":"26488","press_release_id":"37044","analysis_json":{"industry":{"label":"Real Estate Investment Trusts (REITs)","sector":"Real Estate"},"redFlags":["Negative FFO and Core FFO indicate underlying operational cash flow is insufficient to cover distributions or growth","Significant impairment charges ($524k) suggest asset valuation stress","Net loss attributable to common stockholders despite positive consolidated net income due to preferred dividends and non-controlling interests","Loan amendment requires maintaining $200k liquid assets, indicating tight liquidity constraints"],"eventType":"earnings","narrative":"Presidio Property Trust reported a Q1 2026 net loss of $0.10 per share, a sharp reversal from the $1.31 profit posted in the same quarter last year.\n\nTotal revenue declined 8.5% year-over-year to $3.77 million, while underlying Funds From Operations (FFO) turned negative at ($2.1) million, worsening from ($1.2) million in the prior year.\n\nThe reported net income of $558k was significantly boosted by a $3.4 million gain on the disposition of assets and liabilities, masking operational headwinds including $524k in asset impairments and a loss in its Conduit Pharmaceuticals investment.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"SQFT misses on earnings with negative FFO; watch for dividend cut risk given cash flow deterioration."},"keyFigures":{"epsBeat":0,"revenue":3772800,"guidance":"","revenueYoy":"-8.5%","customDimensions":{"noi":2228359,"adjusted_noi":2324816,"impairment_charges":524373,"gain_on_disposition":3416501,"net_income_prior_year":2265352,"net_income_consolidated":558794,"gain_on_sale_model_homes":172096}},"quotedText":"Our strategic evaluation of our commercial portfolio continues, as we focus on maximizing value through leasing and consider future sell/hold/buy potential.","namedEntities":{"people":[{"name":"Steve Hightower","role":"President of the Model Home Division"},{"name":"Gary Katz","role":"Chief Investment Officer"},{"name":"Lowell Hartkorn","role":"Investor Relations"}],"products":[],"companies":[{"name":"Presidio Property Trust, Inc.","ticker":"SQFT","relationship":"filer"},{"name":"Origin Bank","relationship":"lender"},{"name":"Dubose Model Homes #207 LP","relationship":"partner"},{"name":"Conduit Pharmaceuticals","relationship":"investment"}],"dollarAmounts":[{"amount":"$(129,632)","context":"Net loss attributable to common stockholders"},{"amount":"$(0.10)","context":"EPS basic and diluted"},{"amount":"$1.7 million","context":"Net income prior year"},{"amount":"$1.31","context":"EPS prior year"},{"amount":"($2.1 million)","context":"FFO current quarter"},{"amount":"($1.2 million)","context":"FFO prior year"},{"amount":"($1.9 million)","context":"Core FFO current quarter"},{"amount":"($1.0 million)","context":"Core FFO prior year"},{"amount":"$3,772,800","context":"Total revenue"},{"amount":"$2,228,359","context":"Net Operating Income (NOI)"},{"amount":"$2,324,816","context":"Adjusted NOI"},{"amount":"$524,373","context":"Impairment of goodwill and real estate assets"},{"amount":"$3,416,501","context":"Gain on disposition of assets and liabilities"},{"amount":"$200,000","context":"Required liquid assets for loan amendment"}]},"materialImpact":{"score":3,"reasoning":"The company reported a net loss of $0.10 per share, reversing a $1.31 profit in the prior year. While the loss was masked by a $3.4M gain on debt extinguishment, underlying FFO was negative ($2.1M) and deteriorated from the prior year. The release also highlights significant goodwill/asset impairments ($524k) and a loss in a non-core investment (Conduit Pharmaceuticals)."},"tickerRelevance":{"others":[],"primary":"SQFT"},"globalImportance":25,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"earnings_miss","sectorWeight":"neutral","householdBrandBoost":0,"marketCapAdjustment":"low","retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bearish","material_impact_score":3,"narrative":"Presidio Property Trust reported a Q1 2026 net loss of $0.10 per share, a sharp reversal from the $1.31 profit posted in the same quarter last year.\n\nTotal revenue declined 8.5% year-over-year to $3.77 million, while underlying Funds From Operations (FFO) turned negative at ($2.1) million, worsening from ($1.2) million in the prior year.\n\nThe reported net income of $558k was significantly boosted by a $3.4 million gain on the disposition of assets and liabilities, masking operational headwinds including $524k in asset impairments and a loss in its Conduit Pharmaceuticals investment.","key_figures":{"epsBeat":0,"revenue":3772800,"guidance":"","revenueYoy":"-8.5%","customDimensions":{"noi":2228359,"adjusted_noi":2324816,"impairment_charges":524373,"gain_on_disposition":3416501,"net_income_prior_year":2265352,"net_income_consolidated":558794,"gain_on_sale_model_homes":172096}},"named_entities":{"people":[{"name":"Steve Hightower","role":"President of the Model Home Division"},{"name":"Gary Katz","role":"Chief Investment Officer"},{"name":"Lowell Hartkorn","role":"Investor Relations"}],"products":[],"companies":[{"name":"Presidio Property Trust, Inc.","ticker":"SQFT","relationship":"filer"},{"name":"Origin Bank","relationship":"lender"},{"name":"Dubose Model Homes #207 LP","relationship":"partner"},{"name":"Conduit Pharmaceuticals","relationship":"investment"}],"dollarAmounts":[{"amount":"$(129,632)","context":"Net loss attributable to common stockholders"},{"amount":"$(0.10)","context":"EPS basic and diluted"},{"amount":"$1.7 million","context":"Net income prior year"},{"amount":"$1.31","context":"EPS prior year"},{"amount":"($2.1 million)","context":"FFO current quarter"},{"amount":"($1.2 million)","context":"FFO prior year"},{"amount":"($1.9 million)","context":"Core FFO current quarter"},{"amount":"($1.0 million)","context":"Core FFO prior year"},{"amount":"$3,772,800","context":"Total revenue"},{"amount":"$2,228,359","context":"Net Operating Income (NOI)"},{"amount":"$2,324,816","context":"Adjusted NOI"},{"amount":"$524,373","context":"Impairment of goodwill and real estate assets"},{"amount":"$3,416,501","context":"Gain on disposition of assets and liabilities"},{"amount":"$200,000","context":"Required liquid assets for loan amendment"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-15T22:01:56.517Z","global_importance":25,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"earnings_miss","sectorWeight":"neutral","householdBrandBoost":0,"marketCapAdjustment":"low","retailFavoriteBoost":0}},"durationMs":58997,"modelName":"george-droid-qwen-72b"}}