Form 8-K Presidio Property Trust, For: May 16

 

Exhibit 99.1

 

 

Presidio Property Trust, Inc. Announces Earnings for

 

the First Quarter Ended March 31, 2022

 

San Diego, California, May 16, 2022 – Presidio Property Trust, Inc. (Nasdaq: SQFT, SQFTP) (the “Company”), an internally managed, diversified real estate investment trust (“REIT”), today reported earnings for its first quarter ended March 31, 2022. All first quarter financial measures referenced herein are unaudited.

 

“We are pleased to report our first quarter earnings, continuing the strong performance that we saw throughout 2021,” said Jack Heilbron, the Company’s President and Chief Executive Officer. “In the first quarter of 2022, we collected 92% of total tenant billings, including 100% collections among our retail tenants. And just last week, we took advantage of our cash position, to pay off our loan on our 300 NP office property in Fargo, North Dakota in full, prudently deleveraging where it makes sense. That was our last commercial property loan maturing in 2022, with the next commercial property loan not maturing until the middle of 2024.”

 

“15 office, retail, and industrial leases were signed in the first quarter of 2022, with 7 new tenants and 8 existing tenant renewals,” noted Gary Katz, the Company’s Chief Investment Officer. “We saw continued leasing demand in the first quarter, in all our geographies, among a variety of tenants, including financial services and wireless tenants.”

 

First Quarter Ended March 31, 2022 Financial Results

 

Net loss attributable to the Company’s common stockholders for the three months ended March 31, 2022, was approximately $(3.8 million), or $(0.32) per basic and diluted share, compared to a net loss of $(2.6 million), or $(0.28) per basic and diluted share for the three months ended March 31, 2021. The change in net income attributable to the Company’s common stockholders was a result of:

 

	●	A decrease in interest expense for the first quarter of 2022, after the sale of commercial properties in 2021 and payoff of the Polar Note, and
	●	A gain on sale of real estate of 11 model homes sold in the first quarter of 2022, offset by a small loss on the sale of World Plaza
	●	Off set by the preferred stock Series D dividends totaling approximately $0.5 million in Q1 2022, not experienced in Q1 2021.
	●	A one-time Series A Warrant Divided totaling approximately $2.4 million granted in Q1 2022.

 

FFO (non-GAAP) for the three months ended March 31, 2022, decreased by approximately $1 million to $(75,167) from $935,725 to the three months ended March 31, 2021, due primarily to the difference in loss (gain) on sale of real estate assets. 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.

 

 

Acquisitions and Dispositions for the first quarter of 2022

 

●

World Plaza, which was sold on March 11, 2022, for approximately $10.0 million and the Company recognized a loss of approximately $0.3 million.

 

●

The Company disposed of 11 model homes for approximately $5.6 million and recognized a gain of approximately $1.8 million.

 

Dispositions during the first quarter of 2021:

 

●

Waterman Plaza, which was sold on January 28, 2021, for approximately $3.5 million and the Company recognized a loss of approximately $0.2 million.

 

●

Garden Gateway, which was sold on February 19, 2021, for approximately $11.2 million and the Company recognized a loss of approximately $1.4 million.

 

●

The Company disposed of 12 model homes for approximately $4.9 million and recognized a gain of approximately $0.4 million.

  

Dividends paid during the first quarter of 2022:

 

●

During the first quarter of 2022, the Company paid a dividend of $0.105 per share to shareholders of Series A common stock

 

●

During the first quarter of 2022, the Company paid three dividends in the total amount of $0.586 per share to shareholders of Series D preferred stock

 

 

About Presidio Property Trust

 

Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio’s model homes are leased to homebuilders located primarily in Texas and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing a number of properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio is also the sponsor of the Special Purpose Acquisition Company (SPAC) Murphy Canyon Acquisition Corp. (MURFU), which currently holds approximately $140 million in trust. Murphy Canyon Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The SPAC intends to focus on companies in the real estate industry, including construction, homebuilding, real estate owners and operators, arrangers of financing, insurance, and other services for real estate, and adjacent businesses and technologies targeting the real estate space with an aggregate combined enterprise value of approximately $300 million to $1.2 billion. For more information on Presidio, please visit the Company’s website at https://www.PresidioPT.com

 

Definitions

 

Non-GAAP Financial Measures

 

Funds from Operations (“FFO”) – The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

 

However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

 

Core Funds from Operations (“Core FFO”) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items. We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant dividends and the amortization of stock-based compensation.

 

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. 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 Contacts:

 

Presidio Property Trust, Inc.

Lowell Hartkorn, Investor Relations

[email protected]

Telephone: (760) 471-8536 x1244

 

 

Presidio Property Trust, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

		March 31,				December 31,
		2022				2021
		(Unaudited)
ASSETS
Real estate assets and lease intangibles:
Land		$	18,065,246			$	21,136,379
Buildings and improvements			114,976,059				119,224,375
Tenant improvements			11,884,924				12,752,518
Lease intangibles			4,110,139				4,110,139
Real estate assets and lease intangibles held for investment, cost			149,036,368				157,223,411
Accumulated depreciation and amortization			(29,468,491	)			(30,589,969	)
Real estate assets and lease intangibles held for investment, net			119,567,877				126,633,442
Real estate assets held for sale, net			7,282,326				11,431,494
Real estate assets, net			126,850,203				138,064,936
Cash, cash equivalents and restricted cash			22,494,595				14,702,089
Deferred leasing costs, net			1,115,295				1,348,234
Goodwill			2,423,000				2,423,000
Other assets, net			3,992,267				4,658,504
Investments held in Trust (see Notes 2 & 11)			134,905,182				—
TOTAL ASSETS		$	291,780,542			$	161,196,763
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	88,658,485			$	87,324,319
Mortgage notes payable related to properties held for sale, net			4,180,971				1,535,513
Mortgage notes payable, total net			92,839,456				88,859,832
Note payable, net			—				—
Accounts payable and accrued liabilities			3,480,915				4,569,537
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 11)			4,703,232				15,499
Accrued real estate taxes			1,405,957				1,940,913
Dividends payable preferred stock			179,685				179,685
Lease liability, net			68,573				75,547
Below-market leases, net			59,407				73,130
Total liabilities			102,737,225				95,714,143
Commitments and contingencies (Note 9 & 11)
SPAC Class A common stock subject to possible redemption; 13,225,000 shares (at $10.20 per share), net of issuance cost of $6.4 million			128,534,952				—
Equity:
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2022 and December 31, 2021, respectively			9,200				9,200
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,795,970 shares and 11,599,720 shares were issued and outstanding at March 31, 2022 and December 31, 2021, respectively			117,960				115,997
Additional paid-in capital			183,231,322				186,492,012
Dividends and accumulated losses			(133,613,228	)			(130,947,434	)
Total stockholders’ equity before noncontrolling interest			49,745,254				55,669,775
Noncontrolling interest			10,763,111				9,812,845
Total equity			60,508,365				65,482,620
TOTAL LIABILITIES AND EQUITY		$	291,780,542			$	161,196,763

 

 

Presidio Property Trust, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Operations

 

(Unaudited)

 

		For the Three Months Ended March 31,
		2022				2021
Revenues:
Rental income		$	4,452,318			$	5,477,223
Fees and other income			120,823				191,531
Total revenue			4,573,141				5,668,754
Costs and expenses:
Rental operating costs			1,583,473				1,838,923
General and administrative			1,583,691				1,537,265
Depreciation and amortization			1,339,225				1,428,934
Impairment of real estate assets			—				300,000
Total costs and expenses			4,506,389				5,105,122
Other income (expense):
Interest expense-mortgage notes			(1,017,713	)			(1,305,021	)
Interest expense - note payable			—				(279,373	)
Interest and other (expense), net			73,605				(32,785	)
Gain on sales of real estate, net			1,522,785				(1,161,328	)
Gain on extinguishment of government debt			—				10,000
Income tax expense			(265,239	)			(50,199	)
Total other income (expense), net			313,438				(2,818,706	)
Net income (loss)			380,190				(2,255,074	)
Less: Income attributable to noncontrolling interests			(1,208,676	)			(406,608	)
Net loss attributable to Presidio Property Trust, Inc. stockholders		$	(828,486	)		$	(2,661,682	)
Less: Preferred Stock Series D dividends			(539,056	)			—
Less: Series A Warrant dividend			(2,456,511	)			—
Net loss attributable to Presidio Property Trust, Inc. common stockholders		$	(3,824,053	)		$	(2,661,682	)
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted		$	(0.32	)		$	(0.28	)
Weighted average number of common shares outstanding - basic & diluted			11,773,649				9,508,363

 

 

Presidio Property Trust, Inc. and Subsidiaries

 

Reconciliation of Net Income to FFO and Core FFO

 

(Unaudited)

 

		For the Three Months Ended March 31,
		2022				2021
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	(3,824,053	)		$	(2,661,682	)
Adjustments:
Income attributable to noncontrolling interests			1,208,676				406,608
Depreciation and amortization			1,339,225				1,428,934
Amortization of above and below market leases, net			(13,723	)			(1,010	)
Impairment of real estate assets			-				300,000
Loss (Gain) on sale of real estate assets			(1,522,785	)			1,161,328
FFO		$	(2,812,660	)		$	634,178
Stock Based Compensation			280,982				301,547
			2,456,511				—
Core FFO		$	(75,167	)		$	935,725
Weighted average number of common shares outstanding - basic			11,773,649				9,508,363
Core FFO / Wgt Avg Share		$	(0.01	)		$	0.10

 

 

Exhibit 99.2

 

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

As of March 31, 2022

 

 

FORWARD-LOOKING STATEMENTS

 

This presentation contains “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Quarterly Report on Form 10-Q. Forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, dividends, results of operations and other financial and operating information. When used in this presentation, the words “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “project,” “plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

 

The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to it and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described in the Annual Report on Form 10-K, as filed March 30, 2022 (“Annual Report”) and the Company’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof (“Quarterly Report”), changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in the “Risk Factors” section of the Annual Report and the Quarterly Report, many of which are beyond our control. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

 

 

COMPANY OVERVIEW

 

 

 

 

COMMERCIAL PORTFOLIO

 

($ in000’s) Property Location		Sq., Ft.				Date Acquired		Year Property Constructed		Purchase Price (1)				Occupancy				Percent Ownership				Mortgage On property
Office/Industrial Properties:
Genesis Plaza, San Diego, CA (2)			57,807			08/10		1989			10,000				85.6	%			76.4	%			6,140
Dakota Center, Fargo, ND			119,184			05/11		1982			9,575				72.1	%			100.0	%			9,618
Grand Pacific Center, Bismarck, ND (3)			93,000			03/14		1976			5,350				56.6	%			100.0	%			3,589
Arapahoe Center, Colorado Springs, CO			79,023			12/14		2000			11,850				100.0	%			100.0	%			7,728
West Fargo Industrial, West Fargo, ND			150,099			08/15		1998/2005			7,900				87.5	%			100.0	%			4,119
300 N.P., West Fargo, ND			34,517			08/15		1922			3,850				60.1	%			100.0	%			2,222
One Park Centre, Westminster CO			69,174			08/15		1983			9,150				80.5	%			100.0	%			6,248
Shea Center II, Highlands Ranch, CO			121,306			12/15		2000			25,325				90.3	%			100.0	%			17,427
Baltimore, Baltimore, MD			31,752			12/21		2006			8,685				100.0	%			100.0	%			5,670
Total Office/Industrial Properties			755,862							$	91,685				81.5	%						$	62,761
Retail Properties:
Union Town Center, Colorado Springs, CO			44,042			12/14		2003			11,212				87.4	%			100.0	%			8,136
Research Parkway, Colorado Springs, CO			10,700			08/15		2003			2,850				100.0	%			100.0	%			1,691
Mandolin, Houston, TX			10,500			08/21		2021			4,892				100.0	%			61.3	%			—
Total Retail Properties			65,242							$	18,954				91.5	%						$	9,827
			821,104							$	110,639				82.3	%						$	72,588

 

(1)	Prior to January 1, 2009, “Purchase Price” includes our acquisition related costs and expenses for the purchase of the property. After January 1, 2009, acquisition related costs and expenses were expensed when incurred until ASU 2017-01 was adopted by the Company in 2017. Since then, acquisition related costs for real estate acquisitions that do not meet the definition of a business, are capitalized.
(2)	Genesis Plaza is owned by two tenants-in-common, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 76.4%, based on our ownership percentages of each tenant-in-common.
(3)	Property held for sale as of March 31, 2022.

 

 

MODEL HOMES PORTFOLIO

 

Region		No. of Properties				Aggregate Square Feet				Approximate % of Aggregate Square Feet				Current Annual Base Rent				Approximate % of Aggregate Annual Rent				Purchase Price				Current Mortgage Balance
Southwest			82				250,328				96.2	%		$	2,416,092				94.6	%		$	32,806,304			$	20,231,296
Northeast			2				6,153				2.4	%			80,844				3.2	%			898,250				299,904
Midwest			1				3,663				1.4	%			57,420				2.2	%			638,000				392,998
Total			85				260,144				100.0	%		$	2,554,356				100.0	%		$	34,342,554			$	20,924,198

 

 

CONSOLIDATED BALANCE SHEET

 

		March 31,				December 31,
		2022				2021
		(Unaudited)
ASSETS
Real estate assets and lease intangibles:
Land		$	18,065,246			$	21,136,379
Buildings and improvements			114,976,059				119,224,375
Tenant improvements			11,884,924				12,752,518
Lease intangibles			4,110,139				4,110,139
Real estate assets and lease intangibles held for investment, cost			149,036,368				157,223,411
Accumulated depreciation and amortization			(29,468,491	)			(30,589,969	)
Real estate assets and lease intangibles held for investment, net			119,567,877				126,633,442
Real estate assets held for sale, net			7,282,326				11,431,494
Real estate assets, net			126,850,203				138,064,936
Cash, cash equivalents and restricted cash			22,494,595				14,702,089
Deferred leasing costs, net			1,115,295				1,348,234
Goodwill			2,423,000				2,423,000
Other assets, net			3,992,267				4,658,504
Investments held in Trust (see Notes 2 & 11)			134,905,182				—
TOTAL ASSETS		$	291,780,542			$	161,196,763
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	88,658,485			$	87,324,319
Mortgage notes payable related to properties held for sale, net			4,180,971				1,535,513
Mortgage notes payable, total net			92,839,456				88,859,832
Note payable, net			—				—
Accounts payable and accrued liabilities			3,480,915				4,569,537
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 11)			4,703,232				15,499
Accrued real estate taxes			1,405,957				1,940,913
Dividends payable preferred stock			179,685				179,685
Lease liability, net			68,573				75,547
Below-market leases, net			59,407				73,130
Total liabilities			102,737,225				95,714,143
Commitments and contingencies (Note 9 & 11)
SPAC Class A common stock subject to possible redemption; 13,225,000 shares (at $10.20 per share), net of issuance cost of $6.4 million			128,534,952				—
Equity:
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2022 and December 31, 2021, respectively			9,200				9,200
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,795,970 shares and 11,599,720 shares were issued and outstanding at March 31, 2022 and December 31, 2021, respectively			117,960				115,997
Additional paid-in capital			183,231,322				186,492,012
Dividends and accumulated losses			(133,613,228	)			(130,947,434	)
Total stockholders’ equity before noncontrolling interest			49,745,254				55,669,775
Noncontrolling interest			10,763,111				9,812,845
Total equity			60,508,365				65,482,620
TOTAL LIABILITIES AND EQUITY		$	291,780,542			$	161,196,763

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

 

		For the Three Months Ended March 31,
		2022				2021
Revenues:
Rental income		$	4,452,318			$	5,477,223
Fees and other income			120,823				191,531
Total revenue			4,573,141				5,668,754
Costs and expenses:
Rental operating costs			1,583,473				1,838,923
General and administrative			1,583,691				1,537,265
Depreciation and amortization			1,339,225				1,428,934
Impairment of real estate assets			—				300,000
Total costs and expenses			4,506,389				5,105,122
Other income (expense):
Interest expense-mortgage notes			(1,017,713	)			(1,305,021	)
Interest expense - note payable			—				(279,373	)
Interest and other (expense), net			73,605				(32,785	)
Gain on sales of real estate, net			1,522,785				(1,161,328	)
Gain on extinguishment of government debt			—				10,000
Income tax expense			(265,239	)			(50,199	)
Total other income (expense), net			313,438				(2,818,706	)
Net income (loss)			380,190				(2,255,074	)
Less: Income attributable to noncontrolling interests			(1,208,676	)			(406,608	)
Net loss attributable to Presidio Property Trust, Inc. stockholders		$	(828,486	)		$	(2,661,682	)
Less: Preferred Stock Series D dividends			(539,056	)			—
Less: Series A Warrant dividend			(2,456,511	)			—
Net loss attributable to Presidio Property Trust, Inc. common stockholders		$	(3,824,053	)		$	(2,661,682	)
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted		$	(0.32	)		$	(0.28	)
Weighted average number of common shares outstanding - basic & diluted			11,773,649				9,508,363

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

		For the Three Months Ended March 31,
		2022				2021
Cash flows from operating activities:
Net income (loss)		$	380,190			$	(2,255,074	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			1,339,225				1,428,934
Stock compensation			280,981				301,547
Bad debt expense			13,416				—
Loss (Gain) on sale of real estate assets, net			(1,522,785	)			1,161,328
Gain on extinguishment of government debt			—				(10,000	)
Net change in fair value marketable securities			68,962				—
Impairment of real estate assets			—				300,000
Amortization of financing costs			65,018				261,779
Amortization of above-market leases			—				18,027
Amortization of below-market leases			(13,723	)			(19,037	)
Straight-line rent adjustment			(19,660	)			(132,990	)
Changes in operating assets and liabilities:
Other assets			295,357				481,459
Accounts payable and accrued liabilities			(1,330,285	)			(1,980,474	)
Accrued real estate taxes			(534,956	)			(1,023,680	)
Net cash used in operating activities			(978,260	)			(1,468,181	)
Cash flows from investing activities:
Real estate acquisitions			(2,427,890	)			—
Additions to buildings and tenant improvements			(319,737	)			(100,765	)
Investment in marketable securities			(172,866	)			—
Proceeds from sale of marketable securities			755,989				—
Investment of SPAC IPO proceeds into Trust Account			(134,895,000	)			—
Additions to deferred leasing costs			(18,352	)			(37,585	)
Proceeds from sales of real estate, net			14,763,130				19,047,906
Net cash provided by (used in) investing activities			(122,314,726	)			18,909,556
Cash flows from financing activities:
Proceeds from mortgage notes payable, net of issuance costs			7,365,855				6,013,700
Repayment of mortgage notes payable			(3,275,234	)			(17,231,730	)
Repayment of note payable			—				(7,675,598	)
Payment of deferred offering costs			(3,159,411	)			(70,276	)
Distributions to noncontrolling interests, net			(258,410	)			(2,034,212	)
Proceeds from initial public offering of SPAC			132,250,000				—
Dividends paid to preferred stockholders			(539,056	)			—
Dividends paid to common stockholders			(1,298,252	)			(998,795	)
Net cash provided by (used in) financing activities			131,085,492				(21,996,911	)
Net increase (decrease) in cash equivalents and restricted cash			7,792,506				(4,555,536	)
Cash, cash equivalents and restricted cash - beginning of period			14,702,089				11,540,917
Cash, cash equivalents and restricted cash - end of period		$	22,494,595			$	6,985,381
Supplemental disclosure of cash flow information:
Interest paid-mortgage notes payable		$	951,727			$	1,239,193
Interest paid-notes payable		$	—			$	103,861
Non-cash financing activities:
Deferred offering cost SPAC, underwriting commission payable		$	4,628,750			$	—
Dividends payable - Preferred Stock Series D		$	179,685			$	—

 

 

EBITDAre RECONCILIATION

 

		For the Three Months Ended
		03/31/22				03/31/21
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	(3,824,053	)		$	(2,661,682	)
Adjustments:
Interest Expense			1,017,713				1,584,394
Depreciation and Amortization			1,325,502				1,427,924
Asset Impairments			—				300,000
Net Loss on Sales of RE			(1,522,785	)			1,161,328
Gain Extinguishment of Government Debt			—				(10,000	)
Income Taxes			265,239				50,199
EBITDAre		$	(2,738,384	)		$	1,852,163

 

 

FFO AND CORE FFO RECONCILIATION

 

		For the Years Ended
		12/31/2021				12/31/2020
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders		$	(3,824,053	)		$	(2,661,682	)
Adjustments:
Income attributable to noncontrolling interests			1,208,676				406,608
Depreciation and amortization			1,339,225				1,428,934
Amortization of above and below market leases, net			(13,723	)			(1,010	)
Impairment of real estate assets			—				300,000
Loss (gain) on sale of real estate assets, net			(1,522,785	)			1,161,328
FFO		$	(2,812,660	)		$	634,178
Restricted stock compensation			280,982				301,547
Series A Warrant dividend			(2,456,511
Core FFO		$	(75,167	)		$	935,725
Weighted average number of common shares outstanding - basic and diluted			11,773,649				9,508,363
Core FFO / Wgt Avg Share		$	(0.01	)		$	0.10

 

 

SEGMENT DATA

 

 

 

 

DEFINITIONS – NON-GAAP MEASUREMENTS

 

EBITDAre - EBITDAre is defined by NAREIT as earnings before interest, taxes, depreciation and amortization, gain or loss on disposal of depreciated assets, and impairment write-offs.

 

Funds from Operations (“FFO”) – The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO, a non-GAAP measure, as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

 

However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

 

Core Funds from Operations (“Core FFO”) – We calculate Core FFO, a non-GAAP measure, by using FFO as defined by NAREIT and adjusting for certain other non-core items. We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant dividends and the amortization of stock-based compensation.

 

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.

 

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