Presidio Property Trust, Inc 10-Q for FY2020 Q1

Presidio Property Trust, Inc. (SQFT)

10-Q 2020-05-15 For: 2020-03-31

Added on April 08, 2026

About this 10-Q

Presidio Property Trust, Inc filed this 10-Q on May 15, 2020, covering the quarter ended March 31, 2020 (FY2020 Q1).

Headline figures

Quarter ended March 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $7.03M; down 2.1% from $7.18M a year earlier
Net loss: $1.11M; compared with a net loss of $1.73M a year earlier

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Maryland						33-0841255
(State or other jurisdiction of incorporation or organization						(I.R.S. employer identification no.)


Title of class of registered securities	Trading symbol	Name of exchange on which registered
None	N/A	N/A


			Page

Part I. FINANCIAL INFORMATION:			3

Item 1. FINANCIAL STATEMENTS:			3

Condensed Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019			4
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019 (unaudited)			5
Condensed Consolidated Statement s of Changes in Equity for the Three Months Ended March 31, 2020 and 2019 (unaudited)			6
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (unaudited)			7
Notes to Condensed Consolidated Financial Statements (unaudited)			8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures about Market Risk			28
Item 4. Controls and Procedures			28

Part II. OTHER INFORMATION			28

Item 1. Legal Proceedings			28
Item 1A. Risk Factors			28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 3. Defaults Upon Senior Securities			30
Item 4. Mine Safety Disclosures			30
Item 5. Other Information			30
Item 6. Exhibits			30

Signatures			32


	March 31, 2020		December 31, 2019
	(Unaudited)
ASSETS
Real estate assets and lease intangibles:
Land	$	27,242,954	$	27,024,601
Buildings and improvements	140,172,074		139,267,377
Tenant improvements	14,968,991		14,282,502
Lease intangibles	5,321,296		5,321,296
Real estate assets and lease intangibles held for investment, cost	187,705,315		185,895,776
Accumulated depreciation and amortization	(30,603,911)		(29,316,098)
Real estate assets and lease intangibles held for investment, net	157,101,404		156,579,678
Real estate assets held for sale, net	22,090,530		43,626,942
Real estate assets, net	179,191,934		200,206,620
Cash, cash equivalents and restricted cash	8,982,679		10,391,275
Deferred leasing costs, net	1,745,325		2,053,927
Goodwill	2,423,000		2,423,000
Other assets, net	3,999,350		5,709,586
TOTAL ASSETS	$	196,342,288	$	220,784,408
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	114,700,145	$	114,090,245
Mortgage notes payable related to properties held for sale, net	12,423,400		28,302,747
Mortgage notes payable, total net	127,123,545		142,392,992
Note payable, net	7,632,556		12,238,692
Accounts payable and accrued liabilities	4,034,753		5,673,815
Accrued real estate taxes	1,751,297		2,987,601

Lease liability, net	121,203		560,188
Below-market leases, net	267,337		309,932

Total liabilities	140,930,691		164,163,220
Commitments and contingencies (Note 9)
Equity:
Series A Common Stock, 0.01 par value, shares authorized: 100,000,000; 17,763,683 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	177,638		177,638
Additional paid-in capital	152,040,300		152,040,300
Dividends and accumulated losses	(114,144,274)		(113,037,144)
Total stockholders' equity before noncontrolling interest	38,073,664		39,180,794
Noncontrolling interest	17,337,933		17,440,394
Total equity	55,411,597		56,621,188
TOTAL LIABILITIES AND EQUITY	$	196,342,288	$	220,784,408


	For the Three Months Ended March 31,
	2020		2019
Revenues:
Rental income	$	6,785,685	$	6,895,180
Fees and other income	243,466		284,084
Total revenue	7,029,151		7,179,264
Costs and expenses:
Rental operating costs	2,381,092		2,763,550
General and administrative	1,351,345		1,760,703
Depreciation and amortization	1,574,526		2,210,081

Total costs and expenses	5,306,963		6,734,334
Other income (expense):
Interest expense-Series B preferred stock	—		(648,451)
Interest expense-mortgage notes	(1,687,776)		(1,896,752)
Interest expense - note payable	(866,070)		—
Interest and other income (expense), net	(6,995)		5,524
(Loss) gain on sales of real estate, net	(9,835)		1,214,242

Income tax expense	(83,631)		(81,430)
Total other income (expense), net	(2,654,307)		(1,406,867)
Net loss	(932,119)		(961,937)
Less: Income attributable to noncontrolling interests	(175,011)		(766,455)
Net loss attributable to Presidio Property Trust, Inc. common stockholders	$	(1,107,130)	$	(1,728,392)
Basic and diluted loss per common share	$	(0.06)	$	(0.10)
Weighted average number of common shares outstanding - basic and diluted	17,763,683		17,734,797


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common Stock					Additional Paid-in Capital		Dividends and Accumulated Losses		Total Stockholders’ Equity		Non- controlling Interests		Total Equity
	Shares	Amount
Balance, December 31, 2019	17,763,683	$	177,638	$	152,040,300	$	(113,037,144)	$	39,180,794	$	17,440,394	$	56,621,188
Net loss	—	—		—		(1,107,130)		(1,107,130)		175,011		(932,119)

Distributions in excess of contributions received	—	—		—		—		—		(277,472)		(277,472)


Balance, March 31, 2020	17,763,683	$	177,638	$	152,040,300	$	(114,144,274)	$	38,073,664	$	17,337,933	$	55,411,597


State	No. of Properties	Aggregate Square Feet	Approximate % of Square Feet		Current Base Annual Rent		Approximate % of Aggregate Annual Rent
California	3	134,787	11.9	%	$	2,369,118	15.8	%
Colorado	8	597,912	52.9	%	9,115,780		60.7	%
North Dakota	4	397,039	35.2	%	3,528,918		23.5	%
Total	15	1,129,738	100.0	%	$	15,013,816	100.0	%


Geographic Region	No. of Properties	Aggregate Square Feet	Approximate % of Square Feet		Current Base Annual Rent		Approximate of Aggregate % Annual Rent
Southwest	111	323,635	82.9	%	$	3,301,032	79.7	%

Southeast	20	45,727	11.7	%	551,088		13.3	%
Midwest	2	6,602	1.7	%	99,276		2.4	%
East	2	5,255	1.3	%	70,716		1.7	%
Northeast	3	9,271	2.4	%	121,020		2.9	%
Total	138	390,490	100.0	%	$	4,143,132	100.0	%


	March 31, 2020										December 31, 2019
	Lease Intangibles		Accumulated Amortization		Lease Intangibles, net		Lease Intangibles		Accumulated Amortization		Lease Intangibles, net
In-place leases	$	3,186,889	$	(2,592,558)	$	594,331	$	4,360,027	$	(3,283,027)	$	1,077,000
Leasing costs	1,800,922		(1,455,228)		345,694		2,937,976		(2,002,711)		935,265
Above-market leases	333,485		(253,410)		80,075		333,485		(240,739)		92,746
	$	5,321,296	$	(4,301,196)	$	1,020,100	$	7,631,488	$	(5,526,477)	$	2,105,011


Nine months remaining in 2020	$	397,753
Years ending December 31:
2021	372,484
2022	202,479
2023	17,663
2024	17,663
Thereafter	12,058
Total	$	1,020,100


	March 31, 2020		December 31, 2019
Deferred rent receivable	$	2,019,632	$	2,680,886
Prepaid expenses, deposits and other	488,280		601,897
Accounts receivable, net	860,388		1,336,122

Right-of-use assets, net	121,969		561,375
Other intangibles, net	192,707		212,932
Notes receivable	316,374		316,374
Total other assets	$	3,999,350	$	5,709,586


Mortgage note property	Notes	Principal as of					Loan Type		Interest Rate (1)	Maturity
						March 31,					December 31,
						2020					2019
Garden Gateway Plaza	(3)	$	6,019,844	$	6,071,315	Fixed	5.00	%	8/5/2021
World Plaza	(3)(4)	4,953,556		4,979,383		Variable	4.41	%	7/5/2020
West Fargo Industrial		4,196,788		4,216,565		Fixed	4.79	%	9/6/2020
Waterman Plaza		3,254,223		3,274,097		Fixed	5.78	%	4/29/2021
300 N.P.		2,302,197		2,311,738		Fixed	4.95	%	6/11/2022
Highland Court		6,387,511		6,424,366		Fixed	3.82	%	9/1/2022
Dakota Center		10,059,135		10,111,693		Fixed	4.74	%	7/6/2024
Union Terrace	(2)	—		6,240,396		Fixed	4.50	%	9/5/2024
Centennial Tech Center	(2)	—		9,561,654		Fixed	4.43	%	1/5/2024
Research Parkway		1,800,281		1,813,305		Fixed	3.94	%	1/5/2025
Arapahoe Service Center		8,047,511		8,085,727		Fixed	4.34	%	1/5/2025
Union Town Center		8,416,833		8,440,000		Fixed	4.28	%	1/5/2025
Executive Office Park	(3)	4,811,730		4,839,576		Fixed	4.83	%	6/1/2027
Genesis Plaza		6,352,694		6,378,110		Fixed	4.71	%	9/6/2025
One Park Centre		6,461,980		6,487,532		Fixed	4.77	%	9/5/2025
Shea Center II		17,727,500		17,727,500		Fixed	4.92	%	1/5/2026
Grand Pacific Center	(5)	3,823,965		3,851,962		Fixed	4.02	%	8/1/2037
Subtotal, Presidio Property Trust, Inc. Properties		94,615,748		110,814,919
Model Home mortgage notes		33,386,972		32,644,129		Fixed	(6)		2019-2023
Mortgage Notes Payable		$	128,002,720	$	143,459,048
Unamortized loan costs		(879,175)		(1,066,056)
Mortgage Notes Payable, net		$	127,123,545	$	142,392,992


	Presidio Property Trust, Inc. Notes Payable		Model Homes Notes Payable		Total Principal Payments
Nine months remaining in 2020	$	10,312,547	$	9,903,239	$	20,215,786
Years ending December 31:
2021	10,472,745		12,949,485		$	23,422,230
2022	9,710,259		8,345,200		$	18,055,459
2023	1,422,043		2,189,048		$	3,611,091
2024	10,365,425		—		$	10,365,425
Thereafter	52,332,729		—		$	52,332,729
Total	$	94,615,748	$	33,386,972	$	128,002,720


	For the Three Months Ended March 31,								Variance
	2020			2019			$		%
Rental revenues	$	5,252,388		$	4,781,416		$	470,972	9.9	%
Rental operating costs	$	2,239,930		$	2,164,461		75,469		3.5	%
Net operating income	$	3,012,458		$	2,616,955		$	395,503	15.1	%
Operating Ratios:
Number of same properties	15			15
Occupancy, end of period	85.6		%	81.1		%			4.5	%
Operating costs as a percentage of total revenues	42.6		%	45.3		%			(2.7)	%


101.INS	XBRL	Instance Document
101.SCH	XBRL	Taxonomy Extension Schema Document
101.CAL	XBRL	Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL	Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL	Taxonomy Extension Label Linkbase Document
101.PRE	XBRL	Taxonomy Extension Presentation Linkbase Document


Date: May 15, 2020	Presidio Property Trust, Inc.

	By:	/s/ Jack K. Heilbron
	Name:	Jack K. Heilbron
	Title:	Chief Executive Officer

	By:	/s/ Adam Sragovicz
	Name:	Adam Sragovicz
	Title:	Chief Financial Officer

	By:	/s/ Jessica Joelson
	Name:	Jessica Joelson
	Title:	Chief Accounting Officer


Assets by Reportable Segment:	March 31, 2020		December 31, 2019
Office/Industrial Properties:
Land, buildings and improvements, net (1)	$	104,424,683	$	126,421,648
Total assets (2)	$	105,759,056	$	131,180,612
Model Home Properties:
Land, buildings and improvements, net (1)	$	49,433,519	$	48,466,371
Total assets (2)	$	48,298,760	$	51,389,400
Retail Properties:
Land, buildings and improvements, net (1)	$	25,244,792	$	25,318,601
Total assets (2)	$	26,704,009	$	26,588,254
Reconciliation to Total Assets:
Total assets for reportable segments	$	180,761,825	$	209,158,266
Other unallocated assets:
Cash, cash equivalents and restricted cash	1,730,789		1,591,041
Other assets, net	13,849,674		10,035,101
Total Assets	$	196,342,288	$	220,784,408


Capital Expenditures by Reportable Segment	For the Three Months Ended March 31,
			2020			2019
Office/Industrial Properties:
Capital expenditures and tenant improvements	$	881,497		$	2,696,422
Model Home Properties:
Acquisition of operating properties	3,573,743			—
Retail Properties:
Capital expenditures and tenant improvements	8,176			—
Totals:
Acquisition of operating properties, net	3,573,743			—
Capital expenditures and tenant improvements	889,673			2,696,422
Total real estate investments	$	4,463,416		$	2,696,422


Exhibit Number						Description
31.1						Certificate of the Company's Chief Executive Officer (Principal Executive Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's Quarterly Report on Form 10-Q for the quarter ended M arch 31, 2020.

31.2						Certification of the Company's Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's Quarterly Report on Form 10-Q for the quarter ended Ma rch 31, 2020 .

31.3						Certification of the Company's Chief Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 20 20 .

32.1						Certification of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.