Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Presidio Property Trust, Inc. Announces Earnings for the Year Ended December 31, 2021 By: Presidio Property Trust via AccessWire March 31, 2022 at 16:05 PM EDT SAN DIEGO, CA / ACCESSWIRE / March 31, 2022 / Presidio Property Trust, Inc. (NASDAQ:SQFT)(NASDAQ:SQFTP) (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for the year ended December 31, 2021."We are pleased to report our 2021 earnings, continuing the strong rent collections that we saw throughout 2020 and the first parts of 2021," said Jack Heilbron, the Company's President and Chief Executive Officer. "We also took advantage of strong market conditions to sell three office properties and one retail property, as well as 44 model homes. We repositioned the commercial portfolio with our Houston day care and Baltimore medical office acquisitions, in addition to buying 18 new model homes during the year.""50 office, retail, and industrial leases were signed in 2021, with 18 new tenants and 32 existing tenant renewals," noted Gary Katz, the Company's Chief Investment Officer. "We expect to see solid leasing demand continue in the markets where our properties are located in the coming year."Year Ended December 31, 2021 Financial ResultsNet loss attributable to the Company's common stockholders for 2021 was approximately $4.8 million, or $0.46 basic and diluted share, compared to a net loss of approximately $7.7 million, or $0.85 per basic and diluted share for 2020. The improvement in 2021 in net income attributable to the Company's common stockholders was primarily the result of:A decline in 2021 interest expense of approximately $4 million, or 45%, compared to 2020, due to property sales and the elimination of mezzanine debtA decline in 2021 rental operating costs of approximately $2.6 million or 30%, compared to 2020 due to property salesA decline in 2021 general and administrative expenses of approximately $566,000, or 11, compared to 2020Core FFO (non-GAAP) for the year ended December 31, 2021 increased by approximately $1 million to $2.5 million compared to approximately $1.5 million for the year ended December 31, 2020. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. However, because Core 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 has real economic effects and could materially impact the Company's results from operations, the utility of Core FFO as a measure of the Company's performance is limited.Acquisitions and Dispositions during 2021Waterman 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.Highland Court, which was sold on May 20, 2021 for approximately $10.23 million and the Company recognized a loss of approximately $1.6 million.Executive Office Park, which was sold on May 21, 2021, 2021 for approximately $8.1 million and the Company recognized a gain of approximately $2.5 million.During 2021, the Company acquired 28 model homes for approximately $8.4 million. The purchase price was paid through cash payments of approximately $2.7 million and mortgage notes of approximately $5.7 million.During 2021, the Company disposed of 46 model homes for approximately $18.1 million and recognized a gain of approximately $1.6 million.Earnings Conference CallThe Company will hold a conference call at 1:30 pm Pacific Time on March 31, 2022, to discuss the Company's financial results. A supplemental financial package to accompany the discussion of the results will be posted on the Company's website www.presidiopt.com.WebcastTo listen to the conference call over the Internet, and to be able to submit questions to the Company, click on the link under "Presentations" in the "Investor" section of the Company's website at www.presidiopt.comTelephone Conference CallToll-Free: 888-506-0062International: 973-528-0011Entry code: 849173To listen to the call by phone, participants can reference the Presidio Property Q3 2021 Earnings Call. Please dial in at least 10 minutes before the scheduled start time.Conference Call ReplayToll Free: 877-481-4010International: 919-882-2331Replay Passcode: 44721The telephone replay of the call will be available later in the day on March 31, 2022, continuing through April 14, 2022. A replay will also be available at the webcast link under "Presentations" in the "Investor" section of the Company's website until March 31, 2023.About Presidio Property TrustPresidio 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.comDefinitionsNon-GAAP Financial MeasuresFunds 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 has 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 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 StatementsThis 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 RelationsLHartkorn@presidiopt.comTelephone: (760) 471-8536 x1244Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Balance Sheets December 31, December 31, 2021 2020 ASSETS Real estate assets and lease intangibles: Land $21,136,379 $18,827,000 Buildings and improvements 119,224,375 115,409,423 Tenant improvements 12,752,518 11,960,018 Lease intangibles 4,110,139 4,110,139 Real estate assets and lease intangibles held for investment, cost 157,223,411 150,306,580 Accumulated depreciation and amortization (30,589,969) (26,551,789)Real estate assets and lease intangibles held for investment, net 126,633,442 123,754,791 Real estate assets held for sale, net 11,431,494 42,499,176 Real estate assets, net 138,064,936 166,253,967 Cash, cash equivalents and restricted cash 14,702,089 11,540,917 Deferred leasing costs, net 1,348,234 1,927,951 Goodwill 2,423,000 2,423,000 Other assets, net 4,658,504 3,422,781 TOTAL ASSETS $161,196,763 $185,568,616 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $87,324,319 $94,664,266 Mortgage notes payable related to properties held for sale, net 1,535,513 25,365,430 Mortgage notes payable, total net 88,859,832 120,029,696 Note payable, net - 7,500,086 Accounts payable and accrued liabilities 4,585,036 5,126,199 Accrued real estate taxes 1,940,913 2,548,686 Dividends payable preferred stock 179,685 - Lease liability, net 75,547 102,323 Below-market leases, net 73,130 139,045 Total liabilities 95,714,143 135,446,035 Commitments and contingencies (Note 9) Equity: Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 and 0 shares issued and outstanding (liquidation preference $25.00 per share) as of December 31, 2021 and December 31, 2020, respectively 9,200 - Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,599,720 shares and 9,508,363 shares were issued and outstanding at December 31, 2021 and December 31, 2020, respectively 115,997 95,038 Additional paid-in capital 186,492,012 156,463,146 Dividends and accumulated losses (130,947,434) (121,674,505)Total stockholders' equity before noncontrolling interest 55,669,775 34,883,679 Noncontrolling interest 9,812,845 15,238,902 Total equity 65,482,620 50,122,581 TOTAL LIABILITIES AND EQUITY $161,196,763 $185,568,616 Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Year Ended December 31, 2021 2020 Revenues: Rental income $18,420,257 $23,444,119 Fees and other income 810,852 907,673 Total revenue 19,231,109 24,351,792 Costs and expenses: Rental operating costs 6,183,189 8,818,283 General and administrative 6,225,510 5,751,754 Depreciation and amortization 5,397,498 6,274,321 Impairment of real estate assets 608,000 1,730,851 Total costs and expenses 18,414,197 22,575,209 Other income (expense): Interest expense-mortgage notes (4,542,712) (6,097,834)Interest expense - note payable (279,373) (2,715,233)Interest and other income (expense), net (3,417) (20,636)Gain on sales of real estate, net 2,487,528 1,245,460 Gain on extinguishment of government debt 10,000 451,785 Deferred offering costs - (530,639)Income tax credit (expense) 47,620 (370,884)Total other income (expense), net (2,280,354) (8,037,981)Net loss (1,463,442) (6,261,398)Less: Income attributable to noncontrolling interests (2,162,140) (1,412,507)Net loss attributable to Presidio Property Trust, Inc. stockholders $(3,625,582) $(7,673,905)Less: Preferred Stock Series D dividends (1,173,948) - Net loss attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: Basic & Diluted $(0.46) $(0.85)Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Presidio Property Trust, Inc. and SubsidiariesReconciliation of Net Income to FFO and Core FFO(Unaudited) For the Years Ended 12/31/2021 12/31/2020 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Adjustments: Income attributable to noncontrolling interests 2,162,140 1,412,507 Depreciation and amortization 5,397,498 6,274,321 Amortization of above and below market leases, net (18,139) (120,204)Impairment of real estate assets 608,000 1,730,851 Loss (gain) on sale of real estate assets, net (2,487,528) (1,245,460)FFO $862,441 $378,110 Restricted stock compensation 1,614,228 1,105,272 Core FFO $2,476,669 $1,483,381 Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Core FFO / Wgt Avg Share $0.24 $0.16 Presidio Property Trust, Inc. and SubsidiariesSame Store Net Operating Income - Commercial Properties(Unaudited) For the YearsEnded December 31, Variance 2021 2020 % Rental revenues $14,920,335 $14,981,535 $(61,200) (0.4)%Rental operating costs 6,173,340 6,162,440 10,900 0.2%Same Store Net operating income $8,746,995 $8,819,095 $(72,100) 0.9% Operating Ratios: Number of same properties 11 11 Occupancy, end of period 83.9% 86.7% (2.7)%Operating costs as a percentage of total revenues 41.4% 41.1% 0.2%SOURCE: Presidio Property TrustView source version on accesswire.com: https://www.accesswire.com/695378/Presidio-Property-Trust-Inc-Announces-Earnings-for-the-Year-Ended-December-31-2021 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Presidio Property Trust, Inc. Announces Earnings for the Year Ended December 31, 2021 By: Presidio Property Trust via AccessWire March 31, 2022 at 16:05 PM EDT SAN DIEGO, CA / ACCESSWIRE / March 31, 2022 / Presidio Property Trust, Inc. (NASDAQ:SQFT)(NASDAQ:SQFTP) (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for the year ended December 31, 2021."We are pleased to report our 2021 earnings, continuing the strong rent collections that we saw throughout 2020 and the first parts of 2021," said Jack Heilbron, the Company's President and Chief Executive Officer. "We also took advantage of strong market conditions to sell three office properties and one retail property, as well as 44 model homes. We repositioned the commercial portfolio with our Houston day care and Baltimore medical office acquisitions, in addition to buying 18 new model homes during the year.""50 office, retail, and industrial leases were signed in 2021, with 18 new tenants and 32 existing tenant renewals," noted Gary Katz, the Company's Chief Investment Officer. "We expect to see solid leasing demand continue in the markets where our properties are located in the coming year."Year Ended December 31, 2021 Financial ResultsNet loss attributable to the Company's common stockholders for 2021 was approximately $4.8 million, or $0.46 basic and diluted share, compared to a net loss of approximately $7.7 million, or $0.85 per basic and diluted share for 2020. The improvement in 2021 in net income attributable to the Company's common stockholders was primarily the result of:A decline in 2021 interest expense of approximately $4 million, or 45%, compared to 2020, due to property sales and the elimination of mezzanine debtA decline in 2021 rental operating costs of approximately $2.6 million or 30%, compared to 2020 due to property salesA decline in 2021 general and administrative expenses of approximately $566,000, or 11, compared to 2020Core FFO (non-GAAP) for the year ended December 31, 2021 increased by approximately $1 million to $2.5 million compared to approximately $1.5 million for the year ended December 31, 2020. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. However, because Core 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 has real economic effects and could materially impact the Company's results from operations, the utility of Core FFO as a measure of the Company's performance is limited.Acquisitions and Dispositions during 2021Waterman 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.Highland Court, which was sold on May 20, 2021 for approximately $10.23 million and the Company recognized a loss of approximately $1.6 million.Executive Office Park, which was sold on May 21, 2021, 2021 for approximately $8.1 million and the Company recognized a gain of approximately $2.5 million.During 2021, the Company acquired 28 model homes for approximately $8.4 million. The purchase price was paid through cash payments of approximately $2.7 million and mortgage notes of approximately $5.7 million.During 2021, the Company disposed of 46 model homes for approximately $18.1 million and recognized a gain of approximately $1.6 million.Earnings Conference CallThe Company will hold a conference call at 1:30 pm Pacific Time on March 31, 2022, to discuss the Company's financial results. A supplemental financial package to accompany the discussion of the results will be posted on the Company's website www.presidiopt.com.WebcastTo listen to the conference call over the Internet, and to be able to submit questions to the Company, click on the link under "Presentations" in the "Investor" section of the Company's website at www.presidiopt.comTelephone Conference CallToll-Free: 888-506-0062International: 973-528-0011Entry code: 849173To listen to the call by phone, participants can reference the Presidio Property Q3 2021 Earnings Call. Please dial in at least 10 minutes before the scheduled start time.Conference Call ReplayToll Free: 877-481-4010International: 919-882-2331Replay Passcode: 44721The telephone replay of the call will be available later in the day on March 31, 2022, continuing through April 14, 2022. A replay will also be available at the webcast link under "Presentations" in the "Investor" section of the Company's website until March 31, 2023.About Presidio Property TrustPresidio 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.comDefinitionsNon-GAAP Financial MeasuresFunds 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 has 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 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 StatementsThis 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 RelationsLHartkorn@presidiopt.comTelephone: (760) 471-8536 x1244Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Balance Sheets December 31, December 31, 2021 2020 ASSETS Real estate assets and lease intangibles: Land $21,136,379 $18,827,000 Buildings and improvements 119,224,375 115,409,423 Tenant improvements 12,752,518 11,960,018 Lease intangibles 4,110,139 4,110,139 Real estate assets and lease intangibles held for investment, cost 157,223,411 150,306,580 Accumulated depreciation and amortization (30,589,969) (26,551,789)Real estate assets and lease intangibles held for investment, net 126,633,442 123,754,791 Real estate assets held for sale, net 11,431,494 42,499,176 Real estate assets, net 138,064,936 166,253,967 Cash, cash equivalents and restricted cash 14,702,089 11,540,917 Deferred leasing costs, net 1,348,234 1,927,951 Goodwill 2,423,000 2,423,000 Other assets, net 4,658,504 3,422,781 TOTAL ASSETS $161,196,763 $185,568,616 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $87,324,319 $94,664,266 Mortgage notes payable related to properties held for sale, net 1,535,513 25,365,430 Mortgage notes payable, total net 88,859,832 120,029,696 Note payable, net - 7,500,086 Accounts payable and accrued liabilities 4,585,036 5,126,199 Accrued real estate taxes 1,940,913 2,548,686 Dividends payable preferred stock 179,685 - Lease liability, net 75,547 102,323 Below-market leases, net 73,130 139,045 Total liabilities 95,714,143 135,446,035 Commitments and contingencies (Note 9) Equity: Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 and 0 shares issued and outstanding (liquidation preference $25.00 per share) as of December 31, 2021 and December 31, 2020, respectively 9,200 - Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,599,720 shares and 9,508,363 shares were issued and outstanding at December 31, 2021 and December 31, 2020, respectively 115,997 95,038 Additional paid-in capital 186,492,012 156,463,146 Dividends and accumulated losses (130,947,434) (121,674,505)Total stockholders' equity before noncontrolling interest 55,669,775 34,883,679 Noncontrolling interest 9,812,845 15,238,902 Total equity 65,482,620 50,122,581 TOTAL LIABILITIES AND EQUITY $161,196,763 $185,568,616 Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Year Ended December 31, 2021 2020 Revenues: Rental income $18,420,257 $23,444,119 Fees and other income 810,852 907,673 Total revenue 19,231,109 24,351,792 Costs and expenses: Rental operating costs 6,183,189 8,818,283 General and administrative 6,225,510 5,751,754 Depreciation and amortization 5,397,498 6,274,321 Impairment of real estate assets 608,000 1,730,851 Total costs and expenses 18,414,197 22,575,209 Other income (expense): Interest expense-mortgage notes (4,542,712) (6,097,834)Interest expense - note payable (279,373) (2,715,233)Interest and other income (expense), net (3,417) (20,636)Gain on sales of real estate, net 2,487,528 1,245,460 Gain on extinguishment of government debt 10,000 451,785 Deferred offering costs - (530,639)Income tax credit (expense) 47,620 (370,884)Total other income (expense), net (2,280,354) (8,037,981)Net loss (1,463,442) (6,261,398)Less: Income attributable to noncontrolling interests (2,162,140) (1,412,507)Net loss attributable to Presidio Property Trust, Inc. stockholders $(3,625,582) $(7,673,905)Less: Preferred Stock Series D dividends (1,173,948) - Net loss attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: Basic & Diluted $(0.46) $(0.85)Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Presidio Property Trust, Inc. and SubsidiariesReconciliation of Net Income to FFO and Core FFO(Unaudited) For the Years Ended 12/31/2021 12/31/2020 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Adjustments: Income attributable to noncontrolling interests 2,162,140 1,412,507 Depreciation and amortization 5,397,498 6,274,321 Amortization of above and below market leases, net (18,139) (120,204)Impairment of real estate assets 608,000 1,730,851 Loss (gain) on sale of real estate assets, net (2,487,528) (1,245,460)FFO $862,441 $378,110 Restricted stock compensation 1,614,228 1,105,272 Core FFO $2,476,669 $1,483,381 Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Core FFO / Wgt Avg Share $0.24 $0.16 Presidio Property Trust, Inc. and SubsidiariesSame Store Net Operating Income - Commercial Properties(Unaudited) For the YearsEnded December 31, Variance 2021 2020 % Rental revenues $14,920,335 $14,981,535 $(61,200) (0.4)%Rental operating costs 6,173,340 6,162,440 10,900 0.2%Same Store Net operating income $8,746,995 $8,819,095 $(72,100) 0.9% Operating Ratios: Number of same properties 11 11 Occupancy, end of period 83.9% 86.7% (2.7)%Operating costs as a percentage of total revenues 41.4% 41.1% 0.2%SOURCE: Presidio Property TrustView source version on accesswire.com: https://www.accesswire.com/695378/Presidio-Property-Trust-Inc-Announces-Earnings-for-the-Year-Ended-December-31-2021
SAN DIEGO, CA / ACCESSWIRE / March 31, 2022 / Presidio Property Trust, Inc. (NASDAQ:SQFT)(NASDAQ:SQFTP) (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for the year ended December 31, 2021."We are pleased to report our 2021 earnings, continuing the strong rent collections that we saw throughout 2020 and the first parts of 2021," said Jack Heilbron, the Company's President and Chief Executive Officer. "We also took advantage of strong market conditions to sell three office properties and one retail property, as well as 44 model homes. We repositioned the commercial portfolio with our Houston day care and Baltimore medical office acquisitions, in addition to buying 18 new model homes during the year.""50 office, retail, and industrial leases were signed in 2021, with 18 new tenants and 32 existing tenant renewals," noted Gary Katz, the Company's Chief Investment Officer. "We expect to see solid leasing demand continue in the markets where our properties are located in the coming year."Year Ended December 31, 2021 Financial ResultsNet loss attributable to the Company's common stockholders for 2021 was approximately $4.8 million, or $0.46 basic and diluted share, compared to a net loss of approximately $7.7 million, or $0.85 per basic and diluted share for 2020. The improvement in 2021 in net income attributable to the Company's common stockholders was primarily the result of:A decline in 2021 interest expense of approximately $4 million, or 45%, compared to 2020, due to property sales and the elimination of mezzanine debtA decline in 2021 rental operating costs of approximately $2.6 million or 30%, compared to 2020 due to property salesA decline in 2021 general and administrative expenses of approximately $566,000, or 11, compared to 2020Core FFO (non-GAAP) for the year ended December 31, 2021 increased by approximately $1 million to $2.5 million compared to approximately $1.5 million for the year ended December 31, 2020. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. However, because Core 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 has real economic effects and could materially impact the Company's results from operations, the utility of Core FFO as a measure of the Company's performance is limited.Acquisitions and Dispositions during 2021Waterman 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.Highland Court, which was sold on May 20, 2021 for approximately $10.23 million and the Company recognized a loss of approximately $1.6 million.Executive Office Park, which was sold on May 21, 2021, 2021 for approximately $8.1 million and the Company recognized a gain of approximately $2.5 million.During 2021, the Company acquired 28 model homes for approximately $8.4 million. The purchase price was paid through cash payments of approximately $2.7 million and mortgage notes of approximately $5.7 million.During 2021, the Company disposed of 46 model homes for approximately $18.1 million and recognized a gain of approximately $1.6 million.Earnings Conference CallThe Company will hold a conference call at 1:30 pm Pacific Time on March 31, 2022, to discuss the Company's financial results. A supplemental financial package to accompany the discussion of the results will be posted on the Company's website www.presidiopt.com.WebcastTo listen to the conference call over the Internet, and to be able to submit questions to the Company, click on the link under "Presentations" in the "Investor" section of the Company's website at www.presidiopt.comTelephone Conference CallToll-Free: 888-506-0062International: 973-528-0011Entry code: 849173To listen to the call by phone, participants can reference the Presidio Property Q3 2021 Earnings Call. Please dial in at least 10 minutes before the scheduled start time.Conference Call ReplayToll Free: 877-481-4010International: 919-882-2331Replay Passcode: 44721The telephone replay of the call will be available later in the day on March 31, 2022, continuing through April 14, 2022. A replay will also be available at the webcast link under "Presentations" in the "Investor" section of the Company's website until March 31, 2023.About Presidio Property TrustPresidio 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.comDefinitionsNon-GAAP Financial MeasuresFunds 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 has 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 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 StatementsThis 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 RelationsLHartkorn@presidiopt.comTelephone: (760) 471-8536 x1244Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Balance Sheets December 31, December 31, 2021 2020 ASSETS Real estate assets and lease intangibles: Land $21,136,379 $18,827,000 Buildings and improvements 119,224,375 115,409,423 Tenant improvements 12,752,518 11,960,018 Lease intangibles 4,110,139 4,110,139 Real estate assets and lease intangibles held for investment, cost 157,223,411 150,306,580 Accumulated depreciation and amortization (30,589,969) (26,551,789)Real estate assets and lease intangibles held for investment, net 126,633,442 123,754,791 Real estate assets held for sale, net 11,431,494 42,499,176 Real estate assets, net 138,064,936 166,253,967 Cash, cash equivalents and restricted cash 14,702,089 11,540,917 Deferred leasing costs, net 1,348,234 1,927,951 Goodwill 2,423,000 2,423,000 Other assets, net 4,658,504 3,422,781 TOTAL ASSETS $161,196,763 $185,568,616 LIABILITIES AND EQUITY Liabilities: Mortgage notes payable, net $87,324,319 $94,664,266 Mortgage notes payable related to properties held for sale, net 1,535,513 25,365,430 Mortgage notes payable, total net 88,859,832 120,029,696 Note payable, net - 7,500,086 Accounts payable and accrued liabilities 4,585,036 5,126,199 Accrued real estate taxes 1,940,913 2,548,686 Dividends payable preferred stock 179,685 - Lease liability, net 75,547 102,323 Below-market leases, net 73,130 139,045 Total liabilities 95,714,143 135,446,035 Commitments and contingencies (Note 9) Equity: Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 and 0 shares issued and outstanding (liquidation preference $25.00 per share) as of December 31, 2021 and December 31, 2020, respectively 9,200 - Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,599,720 shares and 9,508,363 shares were issued and outstanding at December 31, 2021 and December 31, 2020, respectively 115,997 95,038 Additional paid-in capital 186,492,012 156,463,146 Dividends and accumulated losses (130,947,434) (121,674,505)Total stockholders' equity before noncontrolling interest 55,669,775 34,883,679 Noncontrolling interest 9,812,845 15,238,902 Total equity 65,482,620 50,122,581 TOTAL LIABILITIES AND EQUITY $161,196,763 $185,568,616 Presidio Property Trust, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(Unaudited) For the Year Ended December 31, 2021 2020 Revenues: Rental income $18,420,257 $23,444,119 Fees and other income 810,852 907,673 Total revenue 19,231,109 24,351,792 Costs and expenses: Rental operating costs 6,183,189 8,818,283 General and administrative 6,225,510 5,751,754 Depreciation and amortization 5,397,498 6,274,321 Impairment of real estate assets 608,000 1,730,851 Total costs and expenses 18,414,197 22,575,209 Other income (expense): Interest expense-mortgage notes (4,542,712) (6,097,834)Interest expense - note payable (279,373) (2,715,233)Interest and other income (expense), net (3,417) (20,636)Gain on sales of real estate, net 2,487,528 1,245,460 Gain on extinguishment of government debt 10,000 451,785 Deferred offering costs - (530,639)Income tax credit (expense) 47,620 (370,884)Total other income (expense), net (2,280,354) (8,037,981)Net loss (1,463,442) (6,261,398)Less: Income attributable to noncontrolling interests (2,162,140) (1,412,507)Net loss attributable to Presidio Property Trust, Inc. stockholders $(3,625,582) $(7,673,905)Less: Preferred Stock Series D dividends (1,173,948) - Net loss attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Net loss per share attributable to Presidio Property Trust, Inc. common stockholders: Basic & Diluted $(0.46) $(0.85)Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Presidio Property Trust, Inc. and SubsidiariesReconciliation of Net Income to FFO and Core FFO(Unaudited) For the Years Ended 12/31/2021 12/31/2020 Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $(4,799,530) $(7,673,905)Adjustments: Income attributable to noncontrolling interests 2,162,140 1,412,507 Depreciation and amortization 5,397,498 6,274,321 Amortization of above and below market leases, net (18,139) (120,204)Impairment of real estate assets 608,000 1,730,851 Loss (gain) on sale of real estate assets, net (2,487,528) (1,245,460)FFO $862,441 $378,110 Restricted stock compensation 1,614,228 1,105,272 Core FFO $2,476,669 $1,483,381 Weighted average number of common shares outstanding - basic and diluted 10,340,975 9,023,914 Core FFO / Wgt Avg Share $0.24 $0.16 Presidio Property Trust, Inc. and SubsidiariesSame Store Net Operating Income - Commercial Properties(Unaudited) For the YearsEnded December 31, Variance 2021 2020 % Rental revenues $14,920,335 $14,981,535 $(61,200) (0.4)%Rental operating costs 6,173,340 6,162,440 10,900 0.2%Same Store Net operating income $8,746,995 $8,819,095 $(72,100) 0.9% Operating Ratios: Number of same properties 11 11 Occupancy, end of period 83.9% 86.7% (2.7)%Operating costs as a percentage of total revenues 41.4% 41.1% 0.2%SOURCE: Presidio Property TrustView source version on accesswire.com: https://www.accesswire.com/695378/Presidio-Property-Trust-Inc-Announces-Earnings-for-the-Year-Ended-December-31-2021