Presidio Property Trust, Inc. (SQFT)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $4.13M and GAAP diluted EPS was $0.13, with net income to common of $1.69M driven primarily by a $4.45M net gain on real estate sales; FFO and Core FFO remained negative due to the exclusion of gains and non-cash items .
• Total revenues fell year-over-year (-13.9%) on lower model home rental income and transaction fees and the February sale of two commercial properties; however, G&A decreased and management highlighted 100% retention of expiring leases as an operational positive .
• Segment NOI was led by Office/Industrial ($1.30M) while Model Homes delivered $1.08M Adjusted NOI including $0.24M gain on model home sales; retail NOI was $0.16M .
• Post-quarter, the company executed a 1-for-10 reverse stock split and regained Nasdaq minimum bid compliance, removing a listing overhang that can be a stock reaction catalyst .
• No formal EPS/revenue consensus from S&P Global for Q1 2025 was available; comparisons to estimates are therefore not applicable (values would be sourced from S&P Global if available).

What Went Well and What Went Wrong

What Went Well

• “A noteworthy accomplishment during the first quarter was our 100% retention rate for expiring leases,” highlighting leasing execution despite macro uncertainty .
• Successful portfolio optimization: sold Union Town Center and Research Parkway for ~$17.0M and recognized ~$4.2M net gain; six model homes were sold for ~$2.8M with ~$0.2M gain .
• Cost discipline: G&A decreased by ~$0.4M YoY due to lower consulting and legal fees and reduced stock compensation issuance .

What Went Wrong

• Revenues declined to $4.13M from $4.79M YoY due to lower model home rental income/fees and the asset sales’ impact on commercial rental revenue base .
• FFO and Core FFO deteriorated to $(1.21)M and $(0.98)M, respectively, reflecting non-cash losses and the exclusion of gains on sales; EBITDAre was modest at $0.16M .
• Conduit Pharmaceuticals investment fair value adjustment produced a ~$0.18M loss (vs. ~$3.86M loss in Q1 2024), continuing to pressure non-GAAP metrics .

Financial Results

Consolidated P&L and Non-GAAP

Notes: FFO/Core FFO exclude gains on sales; EBITDAre excludes gains/losses on disposals and impairment per NAREIT .

Segment Breakdown (Revenue and NOI)

Adjusted NOI includes model home sale gains and impairment:

• Q1 2024 Model Home Adjusted NOI: $3,150,268
• Q1 2025 Model Home Adjusted NOI: $1,079,566

Estimates Comparison (S&P Global)

*Values retrieved from S&P Global. Consensus coverage was unavailable for SQFT in Q1 2025.

KPIs and Balance Sheet Highlights

Guidance Changes

No revenue, margin, OpEx, tax rate, or segment guidance ranges were issued in Q1 2025 materials .

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available for SQFT. Themes below reflect press releases and 8-Ks.

Management Commentary

• CEO: “In spite of a challenging macroeconomic climate and economic uncertainty, our team has remained more focused than ever on strategic execution and creating a strong financial balance sheet to create value across our portfolio” .
• CIO: “A noteworthy accomplishment during the first quarter was our 100% retention rate for expiring leases” .
• Model Homes President: “Activity within both the acquisition and resale segments of our model home business remains balanced…add another nationally ranked builder…expands our geographical footprint” .
• Feb 7 disposition note: “Strong interest from the capital markets for retail and the center’s location in the burgeoning north Colorado Springs region contributed to our decision to sell” .

Q&A Highlights

No Q1 2025 earnings call transcript or Q&A session was available; no analyst Q&A insights to report for this quarter [ListDocuments/earnings-call-transcript returned none].

Estimates Context

• S&P Global consensus for EPS and revenue was unavailable for Q1 2025; actuals were Revenue $4.13M and Diluted EPS $0.13 .
• Given the lack of coverage, estimate-based beat/miss analysis is not applicable for Q1 2025.
• If coverage improves, we expect estimate revisions to reflect dispositional gains in GAAP EPS while FFO/Core FFO trends remain sensitive to Conduit mark-to-market and model home activity.
  Values would be sourced from S&P Global when available.

Key Takeaways for Investors

• Asset sales created GAAP profitability (EPS $0.13), but core cash flow metrics (FFO/Core FFO) stayed negative; do not extrapolate GAAP EPS without adjusting for gains on sale .
• Leasing execution remains strong (100% retention), supporting NOI stability in Office/Industrial despite a smaller commercial footprint post-dispositions .
• Balance sheet reduced mortgage debt (~$94.4M vs. ~$102.3M YoY), potentially lowering interest expense while weighted average rate increased to 5.83% .
• Model Homes pipeline is balanced with acquisitions (12 homes, ~$4.3M) and resales (6 homes, ~$2.8M), adding a nationally ranked builder and diversifying client base .
• Conduit fair value losses narrowed materially YoY, but remain a source of volatility for reported non-GAAP metrics; monitor ongoing marks and any monetization .
• Structural actions post-Q1 (1-for-10 reverse split; Nasdaq compliance regained) remove listing risk and may broaden investor access/liquidity .
• Near-term trading: GAAP results could look optically strong on asset gains; core REIT metrics suggest caution until recurring FFO improves. Medium term: execution on leasing, selective acquisitions, and disciplined dispositions could reset the earnings base toward sustainable Core FFO growth .