Presidio Property Trust, Inc. Announces Earnings for the Third Quarter Ended September 30, 2025

Presidio Property Trust, Inc. Announces Earnings for the Third Quarter Ended September 30, 2025 San Diego, California, November 12, 2025 – Presidio Property Trust, Inc. (Nasdaq: SQFT, SQFTP, SQFTW) (the “Company”), an internally managed, diversified real estate investment trust (“REIT”), today reported earnings for its three months ended September 30, 2025. “We fought through the worst office market in recent years to put Presidio in a position to capitalize when conditions normalized—and here we are, as industry headwinds are turning into tailwinds.,” said Jack Heilbron, the Company’s President and Chief Executive Officer. “We have seen a slight uptick in resale activity as mortgage rates have inched lower; recent sales have exceeded our expectations. With the sentiment that rates will continue to ease, we are hopeful that activity will persist, allowing us to take advantage of the expected surge in demand. We also continue to analyze numerous acquisition opportunities, identifying properties that might fit our strict criteria,” said Steve Hightower, President of the Model Home Division. The Third Quarter Ended September 30, 2025, Financial Results Net loss attributable to the Company’s common stockholders for the three months ended September 30, 2025 was approximately $1.9 million, or $1.53 per basic and diluted share, compared to a net loss of approximately $6.6 million, or ($5.33) per basic and diluted share for the three months ended September 30, 2024. The change in net income attributable to the Company’s common stockholders was a result of: ● Total revenues were approximately $4.2 million for the three months ended September 30, 2025, compared to approximately $4.7 million for the same period in 2024. As of September 30, 2025, we had approximately $113.3 million in net real estate assets including 84 model homes, compared to approximately $131.4 million in net real estate assets including 83 model homes at September 30, 2024. The average number of model homes held during the three months ended September 30, 2025 and 2024 was 86 and 82, respectively. The change in revenue is directly related to the decrease in commercial real estate rental income during the current period, from the sale of our two commercial properties on February 7, 2025. ● General and administrative (“G&A”) expenses for the three months ended September 30, 2025 and 2024 totaled approximately $1.5 million and $1.6 million, respectively. G&A expenses as a percentage of total revenue was 32.4% and 34.5% for the three months ended September 30, 2025 and 2024, respectively. G&A expenses for the three months ended September 30, 2025 decreased by approximately $0.2 million partially related to a decrease in bonus expense totaling approximately $115,163 for executives and officers. Additionally, stock compensations decreased by approximately $59,574. ● During the three months ended September, 2025, Company sold three (3 model homes for approximately $1.5 million, net of sales costs, and recognized a gain of approximately $19,685. Additionally, in September we received $0.3 million related to a escrow holdback from the sale of our UTC and Research properties in February 2025 that was recognized a gain on sale. ● During the three months ended September 30, 2025 and 2024, we recognized non-cash impairment charges of approximately $0.1 million related to four model home properties and approximately $0.7 million related to three model homes and one commercial property (Dakota Center), respectively. ● Interest expense, including amortization of deferred finance charges was approximately $1.5 million for the three months ended September 30, 2025, compared to approximately $1.5 million for the same period in 2024. The weighted average interest rate on our outstanding debt was 6.17% and 5.44% as of September 30, 2025 and 2024, respectively. Mortgage notes payable totaled approximately $94.6 million and $103.2 million as of September 30, 2025 and 2024, respectively. The decrease in mortgage notes payable is a direct result of the sale of our two commercial properties during February 2025 and the change in the number of model homes. FFO (non-GAAP) totaled approximately $(0.6 million) and $(0.6 million) for the three months ended September 30, 2025 and 2024, respectively. 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. We believe Core FFO (non-GAAP) provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Core FFO decreased by about $0.5 million, from approximately $0.2 million for the three months ended September 30, 2024, to approximately $(0.3 million) for the three months ended September 30, 2025. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. Acquisitions and Dispositions for the third quarter ended September 30, 2025: There were no acquisitions during the three months ended September 30, 2025: Dispositions during the three months ended September 30, 2025: ● The Company sold three (3) model homes for approximately $1.5 million, net of sales costs, and recognized a gain of approximately $19,685. Segment Income during the three months ended September 30, 2025: The following tables compare the Company’s segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position as of and for the three months ended September 30, 2025. The line items listed in the below NOI tables include the significant expense considered by the CODM for cash allocations on future investments. The Other Non-Segment & Consolidating Items represent corporate activity, the investment in Conduit Pharmaceutical, and other eliminating items for consolidation. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment. This includes the loss on Conduit marketable securities. The following tables compare the Company’s segment activity to its results of operations and financial position as of and for the three months ended September 30, 2025: For the Three Months Ended September 30, 2025 Retail Office/Industrial Model Homes Corporate and Other Total Rental revenue $ 93,574 $ 2,372,147 $ 1,035,923 $ — $ 3,501,644 Recovery revenue — 607,222 — — 607,222 Other operating revenue — 64,450 7,103 15,723 87,276 Total revenues 93,574 3,043,819 1,043,026 15,723 4,196,142 Rental operating costs 4,828 1,627,174 48,743 (146,182 ) 1,534,563 Net Operating Income (NOI) 88,746 1,416,645 994,283 161,905 2,661,579 Gain on Sale - Model Homes — — 19,685 — 19,685 Impairment of Model Homes — — (82,913 ) — (82,913 ) Adjusted NOI $ 88,746 $ 1,416,645 $ 931,055 $ 161,905 $ 2,598,351 The CODM reviews on a regular basis the GAAP performance of each segment, including the significant segment expenses reported for GAAP shown in the table below. Our significant segment expenses include consolidated expense categories presented in our consolidated statements of operations, as well as rental operating costs. This information is provided to the CODM and factors into the CODM’s decision making for company-wide strategy. The following tables compare the Company’s segment activity and to its results of GAAP operations and financial position as of and for the three months ended September 30, 2025. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment as noted above. For the Three Months Ended September 30, 2025 Retail Office/Industrial Model Homes Corporate and Other Total Revenues: Rental income $ 93,574 $ 2,979,369 $ 1,035,923 $ — $ 4,108,866 Fees and other income — 64,450 7,103 15,723 87,276 Total revenue 93,574 3,043,819 1,043,026 15,723 4,196,142 Costs and expenses: Rental operating costs 4,828 1,627,174 48,743 (146,182 ) 1,534,563 General and administrative — 245 174,265 1,275,551 1,450,061 Depreciation and amortization 22,928 987,602 223,876 1,234 1,235,640 Impairment of goodwill and real estate assets — — 82,913 — 82,913 Total costs and expenses 27,756 2,615,021 529,797 1,130,603 4,303,177 Other income (expense): Interest expense - mortgage notes (39,762 ) (932,226 ) (525,755 ) (1,332 ) (1,499,075 ) Interest and other income, net — — 8 5,255 5,263 Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9) — — — (212 ) (212 ) Gain on sales of real estate, net 281,290 — 19,685 — 300,975 Income tax (expense) benefit — — 14,871 — 14,871 Total other income (expense), net 241,528 (932,226 ) (491,191 ) 3,711 (1,178,178 ) Net income (loss) 307,346 (503,428 ) 22,038 (1,111,169 ) (1,285,213 ) Less: Income attributable to noncontrolling interests — (9,777 ) 4,142 — (5,635 ) Net income (loss) attributable to Presidio Property Trust, Inc. stockholders $ 307,346 $ (513,205 ) $ 26,180 $ (1,111,169 ) $ (1,290,848 ) Dividends paid during the three months ended September 30, 2025 and 2024: The following is a summary of distributions declared per share of our Series D Preferred Stock for the three months ended September 30, 2025 and 2024. Series D Preferred Stock Month 2025 2024 Distributions Declared Distributions Declared July $ 0.19531 $ 0.19531 August 0.19531 0.19531 September 0.19531 0.19531 Total $ 0.58593 $ 0.58593 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 the sun belt states. Presidio’s office, industrial, and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. For more information on Presidio, please visit Presidio’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 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, other non-recuring expenses, 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. Forward-looking statements also include statements relating to the closing of the business combination with Conduit within a certain timeframe or at all. 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 Contact: Presidio Property Trust, Inc. Lowell Hartkorn, Investor Relations LHartkorn@presidiopt.com Telephone: (760) 471-8536 x1244 Presidio Property Trust, Inc. and Subsidiaries Consolidated Balance Sheets September 30, December 31, 2025 2024 (unaudited) ASSETS Real estate assets and lease intangibles: Land $ 16,625,237 $ 15,983,323 Buildings and improvements 105,024,265 102,862,977 Tenant improvements 17,338,795 16,488,066 Lease intangibles 3,475,531 3,776,654 Real estate assets and lease intangibles held for investment, cost 142,463,828 139,111,020 Accumulated depreciation and amortization (36,622,641 ) (33,700,262 ) Real estate assets and lease intangibles held for investment, net 105,841,187 105,410,758 Real estate assets held for sale, net 7,440,774 22,185,742 Real estate assets, net 113,281,961 127,596,500 Other assets: Cash, cash equivalents and restricted cash 8,002,915 8,036,496 Deferred leasing costs, net 1,378,568 1,666,135 Goodwill 1,389,000 1,389,000 Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9) 7,515 206,177 Deferred tax asset 298,645 298,645 Other assets, net (see Note 6) 3,450,281 3,376,697 Total other assets 14,526,924 14,973,150 TOTAL ASSETS (1) $ 127,808,885 $ 142,569,650 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $ 83,277,135 $ 80,977,448 Mortgage notes payable related to properties held for sale, net 10,442,278 21,116,646 Mortgage notes payable, total net 93,719,413 102,094,094 Accounts payable and accrued liabilities 3,043,157 3,290,170 Accrued real estate taxes 1,457,629 1,972,477 Dividends payable 190,393 194,784 Lease liability, net 46,373 64,345 Below-market leases, net 4,560 8,625 Total liabilities 98,461,525 107,624,495 Commitments and contingencies (see Note 10) Equity: Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 974,823 shares issued and outstanding (liquidation preference $25.00 per share) as of September 30, 2025 and 997,082 shares issued and outstanding as of December 31, 2024 9,748 9,971 Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,230,601 shares and 1,283,432 shares were issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 12,306 128,343 Additional paid-in capital 186,477,510 185,770,842 Dividends and accumulated losses (165,400,881 ) (159,374,010 ) Total stockholders’ equity before noncontrolling interest 21,098,683 26,535,146 Noncontrolling interest 8,248,677 8,410,009 Total equity 29,347,360 34,945,155 TOTAL LIABILITIES AND EQUITY $ 127,808,885 $ 142,569,650 Presidio Property Trust, Inc. and Subsidiaries Consolidated Statements of Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Rental income $ 4,108,866 $ 4,640,816 $ 12,423,048 $ 13,754,740 Fees and other income 87,276 82,558 277,018 345,236 Total revenue 4,196,142 4,723,374 12,700,066 14,099,976 Costs and expenses: Rental operating costs 1,534,563 1,598,015 4,609,810 4,654,087 General and administrative 1,450,061 1,629,919 4,335,697 5,917,286 Depreciation and amortization 1,235,640 1,455,882 3,691,435 4,158,270 Impairment of goodwill and real estate assets 82,913 697,146 4,427,245 893,939 Total costs and expenses 4,303,177 5,380,962 17,064,187 15,623,582 Other income (expense): Interest expense - mortgage notes (1,499,075 ) (1,473,528 ) (4,487,415 ) (4,514,579 ) Interest and other income, net 5,263 5,263 15,618 15,116 Gain on sales of real estate, net 300,975 361,151 5,078,302 3,191,149 Net loss in Conduit Pharmaceuticals marketable securities (see Note 9) (212 ) (3,932,770 ) (184,672 ) (17,821,437 ) Income tax expense (benefit) 14,871 (6,911 ) (13,630 ) (167,496 ) Total other income (expense), net (1,178,178 ) (5,046,795 ) 408,203 (19,297,247 ) Net loss (1,285,213 ) (5,704,383 ) (3,955,918 ) (20,820,853 ) Less: Income attributable to noncontrolling interests (5,635 ) (355,153 ) (346,103 ) (2,328,386 ) Net loss attributable to Presidio Property Trust, Inc. stockholders $ (1,290,848 ) $ (6,059,536 ) $ (4,302,021 ) $ (23,149,239 ) Less: Series D Preferred Stock dividends (571,179 ) (585,930 ) (1,724,850 ) (1,651,293 ) Net loss attributable to Presidio Property Trust, Inc. common stockholders $ (1,862,027 ) $ (6,645,466 ) $ (6,026,871 ) $ (24,800,532 ) Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: Basic & Diluted $ (1.53 ) $ (5.33 ) $ (4.95 ) $ (20.00 ) Weighted average number of common shares outstanding - basic & dilutive 1,215,943 1,247,657 1,216,873 1,239,980 FFO AND CORE FFO RECONCILIATION For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (1,862,027 ) $ (6,645,466 ) $ (6,026,871 ) $ (24,800,532 ) Adjustments: Income attributable to noncontrolling interests 5,635 355,153 346,103 2,328,386 Depreciation and amortization 1,235,640 1,455,882 3,691,435 4,158,270 Amortization of above and below market leases, net (1,244 ) (1,244 ) (3,509 ) (3,731 ) Impairment of real estate assets 82,913 697,146 4,427,245 893,939 Net change in marketable securities 212 3,932,770 184,672 17,821,997 Loss (gain) on sale of real estate assets, net (300,975 ) (361,151 ) (5,078,302 ) (3,191,149 ) FFO $ (839,846 ) $ (566,910 ) $ (2,459,227 ) $ (2,792,820 ) Restricted stock compensation 287,447 347,021 831,823 1,232,050 Cost associated with Zuma Capital Management — 469,552 — 565,534 Core FFO $ (552,399 ) $ 249,663 $ (1,627,404 ) $ (995,236 ) Weighted average number of common shares outstanding - basic and diluted 1,215,943 1,247,657 1,216,873 1,239,980 Core FFO / Wgt Avg Share $ (0.45 ) $ 0.20 $ (1.34 ) $ (0.80 ) Quarterly Dividends / Share $ — $ — $ — $ —