Executive Summary

Q2 2024 printed a GAAP net loss of $12.4M (−$1.00 EPS) on revenue of $4.59M; the loss was driven by a $10.0M mark‑to‑market hit on Conduit Pharmaceuticals securities, partially offset by $0.8M gains on model home sales .
Operations showed resilient leasing despite macro headwinds: 10 new leases and 78% renewal of expiring square footage in H1, with portfolio occupancy at 82.6% vs 80.9% in Q1 .
Non‑GAAP FFO and Core FFO deteriorated year over year (FFO to −$1.26M; Core FFO to −$0.44M) with higher G&A tied to proxy/settlement costs and legal fees related to Zuma Capital .
No explicit revenue/EPS guidance; management expects continued gains on model home sales into Q3, while Series D preferred dividends held steady at $0.19531 per month; Series A common paid no dividend in Q2 .
No Q2 2024 earnings call transcript was available across our document set or third‑party archives, limiting call‑based narrative; stock‑moving catalysts remain the sizable Conduit fair‑value loss and visibility on model home dispositions .

What Went Well and What Went Wrong

What Went Well

Leasing momentum: 10 leases signed in H1 and 78% renewal of expiring space; “our overall leasing outlook is positive,” per CIO Gary Katz .
Active model home portfolio management: 15 model homes sold for ~$7.4M with ~$0.8M net gain; seven acquired for ~$3.5M, maintaining rental income streams .
Occupancy uptick: consolidated commercial/retail occupancy reached 82.6% at quarter‑end, up from 80.9% in Q1 .

What Went Wrong

Large non‑operating loss: ~$10.0M net loss on Conduit investments drove GAAP results sharply lower; FFO/Core FFO declined YoY .
Elevated G&A burden: G&A rose to $2.20M (48.0% of revenue), driven by annual meeting and settlement/fees linked to Zuma Capital .
Interest expense higher YoY: mortgage interest rose to $1.53M vs $1.34M in Q2 2023, pressuring cash flow despite gains on asset sales .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD)	$4,543,872	$4,790,061	$4,586,541
Net Loss Attributable to Common ($USD)	$(1,831,889)	$(5,763,695)	$(12,391,371)
Diluted EPS ($)	$(0.15)	$(0.47)	$(1.00)
Net Income Margin (%)	−40.3% (calc: net loss/revenue)	−120.3% (calc)	−270.3% (calc)
EBITDAre ($USD)	$101,233	$(880,464)	$(117,604)
FFO ($USD)	$(489,404)	$(971,367)	$(1,255,105)
Core FFO ($USD)	$(228,558)	$(429,445)	$(442,445)

Segment Assets (quarter‑end)

Segment Assets ($USD)	Mar 31, 2024	Jun 30, 2024
Office/Industrial – Total Assets	$77,409,048	$77,076,636
Retail – Total Assets	$16,624,792	$16,541,354
Model Homes – Total Assets	$43,872,416	$39,538,041
Total Assets (company)	$163,478,333	$150,538,283

KPIs

KPI	Q1 2024	Q2 2024
Portfolio Occupancy (Total)	80.9%	82.6%
Model Homes Owned (quarter‑end)	88	80
Model Homes – Current Base Annual Rent	$3,602,088	$3,352,116
Model Homes Sold (units; proceeds)	27; $14.0M	15; $7.4M
Model Homes Acquired (units; spend)	5; $2.2M	7; $3.5M
Tenant Retention of Expiring Sq Ft	N/A	78%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Series D Preferred Dividend per month	Q1 2024 (Jan–Mar)	$0.19531/month	—	—
Series D Preferred Dividend per month	Q2 2024 (Apr–Jun)	—	$0.19531/month (Apr–Jun)	Maintained vs prior quarter level
Series D Preferred Dividend per month	Q3 2024 (Jul–Sep)	—	$0.19531/month (Jul–Sep)	Maintained
Series A Common Dividend	Q1 2024	$0.00	—	—
Series A Common Dividend	Q2 2024	—	$0.00	Maintained (lower vs Q2 2023)
Model Home Sales Outcome	Q3 2024	—	Management expects net gains on model home sales	New directional indication

Note: No explicit revenue/EPS/margin guidance was provided in Q2 materials .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our document corpus or third‑party archives, limiting call‑based theme tracking [ListDocuments returned none; 2024 Q2 range yielded 0; https://seekingalpha.com/symbol/SQFT].

Topic	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Leasing activity/retention	“24,476 sf” signed; more stable rent roll expected in 2024	10 new leases in H1; 78% renewals; “outlook is positive”	Improving stability; robust renewals
Model home transactions	27 sold; $2.0M gain; 5 acquired	15 sold; $0.8M gain; 7 acquired; continued Q3 gains expected	Continued portfolio rotation; gains persist
Macro rates/affordability	Noted model home sales volume vs prior year	“Challenges with affordability and higher interest rates” but brisk activity	Rates remain headwind; execution offsets
Conduit investment exposure	$3.9M fair‑value loss in Q1	~$10.0M fair‑value loss in Q2; lock‑up and warrants detailed	Volatility increased; non‑operating drag
Property‑level debt/events	Normal course	Dakota Center loan matured July 6, 2024; lender negotiations ongoing	Refinancing/sale path uncertainty

Management Commentary

“During the first and second quarters, we entered into 10 leases with new tenants totaling nearly 36,000 sf… renewed 78% of expiring square footage… Our overall leasing outlook is positive.” — Gary Katz, CIO .
“Despite challenges with affordability and higher interest rates, we have had a brisk quarter of sales activity… We continue to analyze acquisition opportunities…” — Steve Hightower, President, Model Homes Division .
Q1 setup: “With currently scheduled lease expirations during 2024 at a level nearly one‑half of that during 2023… good reason to anticipate… more stable rent roll…” — Gary Katz, CIO .
Conduit investment mechanics (lock‑up, private CDT warrants; fair‑value Level 3 remeasurement) and aggregate holdings detail were provided, highlighting mark‑to‑market exposure .

Q&A Highlights

No Q2 2024 earnings call transcript was available; therefore, no Q&A themes or clarifications can be cited [ListDocuments 2024-07 to 2024-09 earnings-call-transcript returned 0; https://seekingalpha.com/symbol/SQFT].

Estimates Context

Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable due to data access limitations during retrieval. As a result, we cannot present a vs‑estimates comparison and recommend treating reported results as absolute performance vs prior periods [GetEstimates error].

Key Takeaways for Investors

Core operations stable: leasing retention at 78% and occupancy improved to 82.6%, supporting base rent durability despite rate headwinds .
Non‑operating volatility is the swing factor: ~$10.0M Conduit fair‑value loss dominated GAAP; investors should discount GAAP noise and track FFO/Core FFO trend, which still weakened YoY .
Model home portfolio rotation continues: gains on sales persisted in Q2 and are expected into Q3; watch acquisition pace and sales mix for cash generation .
Balance sheet: total assets fell to $150.5M from $163.5M in Q1 and $176.0M at YE, with mortgage notes at ~$101.1M; Dakota Center loan outcome is a near‑term risk item .
Dividend profile: Series D preferred remains consistent ($0.19531/month), while common dividends are suspended; income investors stay in preferred, equity holders should focus on FFO recovery .
Catalysts: resolution on Dakota Center debt path, continued occupancy gains, and realized gains on model home dispositions can improve sentiment; conversely, further Conduit marks could pressure reported GAAP .

Citations: Q2 2024 8‑K press release and exhibits ; Q1 2024 8‑K press release and exhibits ; Q2 2024 additional press releases .

Presidio Property Trust, Inc. (SQFT)·Q2 2024 Earnings Summary