Presidio Property Trust Reports Significant Financial Changes in 10-Q Filing, Including Decline in Assets and Net Loss

Presidio Property Trust, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in total assets, which decreased to $145.8 million from $176.0 million at the end of 2023. This reduction was primarily attributed to a decrease in real estate assets and lease intangibles held for investment, which fell to $118.1 million from $138.7 million. Conversely, real estate assets held for sale increased to $13.3 million, up from $5.5 million.

For the three months ended September 30, 2024, total revenue rose to $4.7 million, compared to $4.5 million in the same period of 2023. Rental income also increased, reaching $4.5 million for the quarter, up from $4.3 million year-over-year. However, total costs and expenses surged to $5.4 million from $4.5 million, leading to a net loss of $5.7 million for the quarter, a stark contrast to the net income of $22.2 million reported in Q3 2023. For the nine-month period, the company reported a net loss of $20.8 million, compared to a net income of $21.3 million in the prior year.

The company’s financial position was further impacted by its investment in Conduit Pharmaceuticals, which resulted in a net loss of approximately $17.8 million for the nine months ended September 30, 2024. The fair value of investments in Conduit was approximately $0.5 million as of the reporting date.

In terms of strategic developments, Presidio completed the sale of 46 model homes for approximately $22.3 million during the nine months ended September 30, 2024, recognizing a net gain of about $3.2 million. This was a notable increase from the sale of 15 model homes for $7.8 million in the same period of 2023. The company also acquired 19 model homes for approximately $9.7 million during the nine months, down from 25 homes for $13.7 million in the previous year.

The company’s liabilities decreased to $107.7 million from $114.6 million, with mortgage notes payable at $91.8 million, down from $103.7 million. Total stockholders' equity fell to $38.1 million from $61.3 million at the end of 2023. The company has also initiated a stock repurchase program, authorizing up to $6.0 million for Series A Common Stock and $4.0 million for Series D Preferred Stock, expiring in November 2024.

Overall, Presidio Property Trust is navigating a challenging financial landscape, marked by significant losses and strategic asset management, while continuing to focus on its core real estate investment activities.