Executive Summary

Q3 2025 revenue was $4.20M and EPS was $(1.53), with net loss to common of $(1.86)M; losses narrowed sharply year over year versus Q3 2024’s $(6.65)M and $(5.33) EPS, while revenue declined due to prior asset sales .
FFO was $(0.84)M and Core FFO was $(0.55)M; EBITDAre was $0.64M, reflecting lower impairment versus Q2 and modest gains on asset sales .
Management emphasized turning office headwinds into tailwinds and noted a slight uptick in model home resale activity as mortgage rates eased, exceeding recent expectations .
The board maintained monthly Series D preferred dividends at $0.19531 per share for Oct–Dec 2025, supporting preferred investor cash yield continuity .

What Went Well and What Went Wrong

What Went Well

“We fought through the worst office market…as industry headwinds are turning into tailwinds,” signaling improving office fundamentals per CEO Jack Heilbron .
Model home resale activity showed “a slight uptick as mortgage rates have inched lower,” with recent sales exceeding expectations, per Model Home Division President Steve Hightower .
Q3 Y/Y loss improved materially: net loss to common $(1.86)M vs $(6.65)M Y/Y; G&A fell to $1.45M vs $1.63M Y/Y, aided by lower bonus and stock comp expenses .

What Went Wrong

Revenue declined Y/Y to $4.20M from $4.72M, primarily due to lower commercial rental income after selling two commercial properties in February 2025 .
Continued asset impairments including model homes ($0.08M) and earlier property impairments (e.g., Shea Center II) weighed on Core FFO trajectory quarter to quarter .
Weighted average interest rate rose to 6.17% (from 5.44% Y/Y), sustaining interest expense at ~$1.5M and pressuring coverage metrics despite mortgage balance downticks .

Financial Results

Consolidated Results (Quarterly progression)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$4,125,184	$4,378,740	$4,196,142
EPS (Basic & Diluted, $)	$0.13	$(5.13)	$(1.53)
EBITDAre ($USD)	$163,553	$893,438	$638,723
FFO ($USD)	$(1,209,945)	$(409,437)	$(839,846)
Core FFO ($USD)	$(980,442)	$(94,563)	$(552,399)

Q3 Year-over-Year Comparison

Metric	Q3 2024	Q3 2025
Revenue ($USD)	$4,723,374	$4,196,142
EPS (Basic & Diluted, $)	$(5.33)	$(1.53)
Interest Expense ($USD)	$1,473,528	$1,499,075

Q3 2025 Segment Breakdown

Segment	Rental Revenue ($)	Recovery Revenue ($)	Other Op Rev ($)	Total Revenues ($)	Rental Op Costs ($)	NOI ($)	Adjusted NOI ($)
Retail	$93,574	$0	$0	$93,574	$4,828	$88,746	$88,746
Office/Industrial	$2,372,147	$607,222	$64,450	$3,043,819	$1,627,174	$1,416,645	$1,416,645
Model Homes	$1,035,923	$0	$7,103	$1,043,026	$48,743	$994,283	$931,055
Corporate & Other	$0	$0	$15,723	$15,723	$(146,182)	$161,905	$161,905
Total	$3,501,644	$607,222	$87,276	$4,196,142	$1,534,563	$2,661,579	$2,598,351

KPIs and Balance Sheet Drivers

KPI	Q1 2025	Q2 2025	Q3 2025
Model Homes (count)	84	87	84
Model Homes Base Annual Rent ($)	$3,556,008	$3,792,924	$3,654,900
Mortgage Notes Payable, total net ($)	$93,742,547	$94,603,804	$93,719,413
Weighted Avg Interest Rate (%)	5.83%	5.90%	6.17%
Gains on Sale ($)	$4,453,968	$323,359	$300,975

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Series D Preferred Dividend ($/share)	Oct–Dec 2025	Ongoing monthly dividend declarations (historical cadence)	$0.19531 per month for Oct, Nov, Dec 2025; pay dates Nov 17, Dec 15, Jan 15	Maintained
Dakota Center Sale Timing	Q4 2025–Q1 2026	N/A	Expected sale to close Q4 2025 or Q1 2026; impairment of ~$3.3M YTD	New timing disclosure

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available after searching company documents and transcripts catalogs (Q3 press release and 10-Q were filed; no transcript found). We rely on management statements from press releases and filings for thematic tracking.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Office market dynamics	Emphasis on lease retention; 100% Q1 expirations retained; ~90% renewals YTD in Q2	“Headwinds turning into tailwinds”; continued refinancing and leasing efforts	Improving
Model home resales & acquisitions	Balanced activity; acquisitions (12 homes) and resales (6 homes) in Q1; 10 acquired and 7 sold in Q2	Slight resale uptick as mortgage rates eased; 3 sold (~$1.5M) in Q3	Stabilizing to improving
Capital markets/refinancing	Refinanced one property; ongoing focus on capital structure in Q3	Refinanced One Park Center (five-year loan) and extended ~91% of 2025 expirations YTD	Improving
Impairments and asset sales	Dakota Center impairment and Shea Center II impairment in Q2; strong gains on sales in Q1	Smaller Q3 impairments (~~$0.08M on model homes); gains on sales continued (~~$0.30M)	Improving (lower impairments)
Interest rate/macro	Weighted avg rate 5.83–5.90%; macro headwinds cited	Weighted avg rate up to 6.17%; commentary that mortgage rates eased, aiding resales	Mixed (rate level higher; resales aided)

Management Commentary

CEO Jack Heilbron: “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.”
President, Model Home Division Steve Hightower: “We have seen a slight uptick in resale activity as mortgage rates have inched lower; recent sales have exceeded our expectations…we continue to analyze numerous acquisition opportunities.”
CIO Gary Katz (Q3 activity update): “Despite the headwinds facing the commercial property sector, we were able to successfully navigate the capital markets to refinance two office buildings this year. Our impressive tenant retention rate demonstrates that our tenant base is stable moving into the future.”

Q&A Highlights

No Q3 2025 earnings call transcript was found in company filings or transcripts catalogs for SQFT within the period searched; therefore, no Q&A highlights are available. We reviewed the Q3 8-K press release and 10-Q as primary sources .

Estimates Context

S&P Global consensus appears unavailable for EPS and revenue (no published quarterly consensus values or estimate counts found for Q1–Q3 2025). Values retrieved from S&P Global.*
Implication: With minimal/no sell-side coverage, investors should anchor on company-reported GAAP and non-GAAP (FFO/Core FFO/EBITDAre) trends when assessing trajectory .

Key Takeaways for Investors

Losses narrowed markedly Y/Y in Q3 due to lower impairments and ongoing gains on sales, despite revenue pressure from earlier asset dispositions .
Office fundamentals show signs of improvement per management tone, and the company executed refinancing while sustaining high tenant retention—key supports for liquidity and cash flows .
Model home portfolio remains a significant earnings driver (84 homes; ~$3.65M base annual rent), with resale activity benefitting from modestly easing mortgage rates .
Interest burden remains elevated as weighted average rates rose to 6.17%; monitoring debt service coverage and refinancing opportunities remains critical .
Preferred investors benefit from maintained Series D dividends ($0.19531/month); common equity holders should watch asset sale timing (Dakota Center) and leasing progress at Shea Center II .
With limited external consensus, track company-reported KPI cadence: FFO/Core FFO, EBITDAre, segment NOI, leasing and dispositions to gauge quarter-to-quarter momentum .
Near-term trading catalysts: any announced closing of Dakota Center sale, further refinancing/leasing wins, and demonstrated sequential improvements in Core FFO/EBITDAre could re-rate sentiment .

* Values retrieved from S&P Global.

Presidio Property Trust, Inc. (SQFT)·Q3 2025 Earnings Summary