Presidio Property Trust Files 10-K/A Amendment

TL;DR

<b>Presidio Property Trust filed a 10-K/A amendment detailing its 2023 financial performance and significant lease expirations and loan maturities.</b>

AI Summary

Presidio Property Trust, Inc. (SQFTW) filed a Amended Annual Report (10-K/A) with the SEC on April 17, 2024. Presidio Property Trust, Inc. filed a 10-K/A amendment on April 17, 2024, for the fiscal year ending December 31, 2023. The filing includes financial data such as total assets of $11,859,726 and total debt of $11,807,893 as of December 31, 2023. A significant event was the expiration of Halliburton's lease on December 31, 2022, which accounted for approximately 536,080 sq ft and $1.1 million in annual base rent. The company recorded a $0.4 million impairment charge for eight model homes during 2023. The loan on Dakota Center matures in July 2024, and management is seeking an extension and loan term modifications.

Why It Matters

For investors and stakeholders tracking Presidio Property Trust, Inc., this filing contains several important signals. The amendment provides updated financial figures and disclosures for the fiscal year 2023, offering a clearer picture of the company's financial health and operational status. Key events like the Halliburton lease expiration and the upcoming Dakota Center loan maturity highlight potential financial risks and strategic challenges the company is addressing.

Risk Assessment

Risk Level: medium — Presidio Property Trust, Inc. shows moderate risk based on this filing. The company faces medium risk due to the significant vacancy from the Halliburton lease expiration and the upcoming maturity of the Dakota Center loan, which could impact cash flow and financial stability.

Analyst Insight

Monitor the company's progress in re-leasing the vacant space and securing an extension or refinancing for the Dakota Center loan.

Financial Highlights

total Assets

11,859,726

total Debt

11,807,893

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K/A filing.)
• 11,859,726 — Total Assets (As of December 31, 2023.)
• 11,807,893 — Total Debt (As of December 31, 2023.)
• 536,080 — Square Footage (Size of Halliburton's expired lease.)
• 1.1 million — Annual Base Rent (Halliburton's contribution to annual base rent.)
• 0.4 million — Impairment Charge (Recorded for model homes in 2023.)
• July 2024 — Loan Maturity (For the Dakota Center property.)

Key Players & Entities

• Presidio Property Trust, Inc. (company) — Filer of the 10-K/A amendment.
• Halliburton (company) — Former largest tenant whose lease expired.
• Dakota Center (company) — Property with a loan maturing in July 2024.
• 4995 Murphy Canyon Road, Suite 300, San Diego, CA 92123 (company) — Business and mailing address.
• NETREIT, INC. (company) — Former company name.

FAQ

Risk Factors

• Tenant Vacancy Risk [high — operational]: The company faces risk from the vacancy of its largest tenant, Halliburton, which occupied 536,080 sq ft and contributed $1.1 million in annual base rent.
• Loan Maturity Risk [medium — financial]: The Dakota Center loan matures in July 2024, and management is seeking an extension and modification of terms, posing a refinancing risk.
• Impairment Charges [low — financial]: A $0.4 million impairment charge was recorded for model homes due to lower estimated sales prices and a short hold period.

Key Financial Figures

• $0.01 — ich Registered Series A Common Stock, $0.01 par value per share SQFT The Nasdaq
• $1.1 million — r 31, 2022, and we placed approximately $1.1 million in a reserve account with our lender to
• $21.9 million — purchase price for these properties was $21.9 million. The purchase price consisted of cash p
• $6.6 million — ase price consisted of cash payments of $6.6 million and mortgage notes of $15.3 million. A
• $15.3 million — s of $6.6 million and mortgage notes of $15.3 million. Acquisitions during the year ended De
• $15.6 million — e purchase price for the properties was $15.6 million. The purchase price consisted of cash p
• $4.8 million — ase price consisted of cash payments of $4.8 million and mortgage notes of $10.8 million. W
• $10.8 million — s of $4.8 million and mortgage notes of $10.8 million. We review our portfolio of investment
• $11.7 million — ties: 22 model homes for approximately $11.7 million and the Company recognized a gain of ap
• $3.2 million — pany recognized a gain of approximately $3.2 million. Dispositions during the year ended D
• $10.0 million — ld on March 11, 2022, for approximately $10.0 million and the Company recognized a loss of ap
• $0.3 million — pany recognized a loss of approximately $0.3 million. 31 model homes for approximately $17.
• $17.5 million — lion. 31 model homes for approximately $17.5 million and the Company recognized a gain of ap
• $5.4 million — pany recognized a gain of approximately $5.4 million. Model Home Properties Our Model Ho
• $50.8 million — with a net book value of approximately $50.8 million . 3 Table of Contents Our Model Ho

Filing Documents

• sqft20231231c_10ka.htm (10-K/A) — 2927KB
• ex_654690.htm (EX-31.1) — 12KB
• ex_654691.htm (EX-31.2) — 13KB
• ex_654692.htm (EX-32.1) — 8KB
• 0001437749-24-012230.txt (&nbsp;) — 12449KB
• sqft-20231231.xsd (EX-101.SCH) — 91KB
• sqft-20231231_cal.xml (EX-101.CAL) — 67KB
• sqft-20231231_def.xml (EX-101.DEF) — 713KB
• sqft-20231231_lab.xml (EX-101.LAB) — 557KB
• sqft-20231231_pre.xml (EX-101.PRE) — 738KB
• sqft20231231c_10ka_htm.xml (XML) — 2238KB

BUSINESS

BUSINESS 2 ITEM 1A.

RISK FACTORS

RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENT 39 ITEM 1C CYBERSECURITY 39 ITEM 2.

PROPERTIES

PROPERTIES 40 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 45 ITEM 4. MY SAFETY DISCLOSURES 45 Part II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUERS PURCHASES OF EQUITY SECURITIES 45 ITEM 6. RESERVED 48 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 49 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 64 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 64 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 65 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 65 ITEM 9B. OTHER INFORMATION 65 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 65 Part III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 66 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 66 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 66 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 66 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 66 Part IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 66 Table of Contents CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING STATEMENTS, RISK FACTORS AND INDUSTRY DATA This Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 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 this Form 10-K. Important factors that may cause actual results to differ from projections include, but are not limited to: inherent risks associated with real estate investments and with the real estate industry; significant competition may decrease or prevent increases in our properties' occupancy and rental rates and may reduce the value of our properties; a decrease in demand for commercial space and model homes and/or an increase in operating costs; failure by any major tenant (or a substantial number of tenants) to make rental payments to us because of a deterioration of its financial condition, an early termination of its lease, a non-renewal of its lease, or a renewal of its lease on terms less favorable to us; challenging economic conditions facing us and our tenants may have a material adverse effect on our financial condition and results of operations; our failure to generate sufficient cash to pay dividends and to service or retire our debt obligations in a timely manner; our inability to borrow or raise sufficient capital to maintain or expand our real estate investment portfolio; adverse changes in the real estate financing markets, including poten

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