Executive Summary

Q3 revenue rose 59% year over year to $0.615M and 23% sequentially from Q2’s $0.499M; net loss narrowed to $0.077M from $0.095M in Q3’21, with EPS of $(0.01) (Q/Q: from $(0.00) in Q1) .
Mix improved: Property Investment Portfolio revenue increased to $0.450M (+43% YoY), while Real Estate Services more than doubled to $0.165M (+127% YoY), reflecting brokerage and advisory traction .
Balance sheet/liquidity: Cash was $0.842M; YTD operating cash flow was $0.398M; the company also secured a $4.5M bank facility in July to fund acquisitions and expansions—key catalysts for near‑term deals and portfolio growth .
Management highlighted a growing national pipeline and “capital engine,” positioning the firm to pursue market share with a balanced debt/equity approach; no formal financial guidance was issued .

What Went Well and What Went Wrong

What Went Well
- Strong top-line growth: Total revenue up 59% YoY; property rents up 43% YoY (Chino Valley expansion drove higher base rent); services revenue up 127% YoY .
- Strategic funding in place: $4.5M East West Bank facility creates buying power for acquisitions; management reiterated intent to scale Property Investment Portfolio .
- Positive operating cash generation YTD ($0.398M), supporting growth investments without equity issuance .
- CEO tone: “The Zoned Properties pipeline and capital engine has been turned on,” emphasizing acceleration of services and acquisitions for shareholder value .
What Went Wrong
- Continued net loss of $0.077M (vs. $0.095M LY), with higher compensation and brokerage costs as the company scales services .
- Tenant concentration risk remains elevated: Significant Tenants represented ~71.5% of total assets; rental and advisory revenue tied to them comprised 72.4% of Q3 revenue .
- Cash declined YTD (to $0.842M) due to $0.5M tenant improvement allowance and $0.176M deferred financing costs for the new facility, partly offset by positive operating cash flow .

Financial Results

Metric	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Revenue ($)	$387,365	$938,701	$498,652	$614,988
Net Income ($)	$(95,495)	$(25,696)	$(39,063)	$(77,328)
Diluted EPS ($)	$(0.01)	$(0.00)	N/A	$(0.01)
Operating Income (EBIT) ($)	$(53,451)	$9,518	N/A	$(45,263)
EBIT Margin (%)	(−13.8%) (calc. from −53,451/387,365)	1.0% (calc. from 9,518/938,701)	N/A	(−7.4%) (calc. from −45,263/614,988)

Segment revenue breakdown (Q3):

Segment	Q3 2021	Q3 2022
Property Investment Portfolio Revenue ($)	$314,677	$450,374
Real Estate Services Revenue ($)	$72,688	$164,614

Key performance indicators:

KPI	Value
Cash and Equivalents (9/30/22)	$842,115
Net Cash from Operations (YTD 9/30/22)	$398,311
Properties Owned / Occupancy	4 properties; 100% leased; 160,249 rentable sq ft
Annual NNN Passive Rental Revenue (run-rate)	~$1.83M
Contracted Future Base Rent (Total)	$30,515,313
Bank Facility Availability	Up to $4.5M line (MAL)

Notes: The company did not hold or file a Q3’22 earnings call transcript; comparisons vs estimates are therefore omitted, and no formal quantitative guidance was provided in the press release/filings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS / Margins	FY / Q4 2022	None	None (no formal guidance issued)	Maintained (no guidance)
Capital Deployment	Next few quarters	Qualitative only	Targeting acquisitions funded by $4.5M facility; balanced debt/equity approach	Qualitative update

Earnings Call Themes & Trends

No Q3’22 earnings call transcript was available. Thematic evolution from Q1 → Q2 → Q3 based on filings/press materials:

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Property Technology (PropTech)	Q1: Launched Rezone (beta) to democratize zoning data; Q2: Invested in AnamiTech/GreenSpace Pro project mgmt platform	Continuing investments and partnerships to build a robust tech stack enabling scalable services	Expanding tech stack and integration
Real Estate Services scaling	Q1: Brokerage driving revenues; advisory expanding nationally	Continued growth in brokerage/advisory; services revenue +127% YoY in Q3	Scaling headcount and client base
Capital & Buying Power	Q1: No facility; Q2: Secured $4.5M MAL with East West Bank	Buying power to accelerate acquisitions; balanced debt/equity approach	Improved access to capital
Tenant-driven rent growth	Q1/Q2: $8M tenant improvements (Chino Valley, Tempe) increased base rent	Continued benefit in Q3 rent revenue YoY	Higher base rent supports NOI
Geographic expansion	Q2: Brokerage teams active in AZ, MS, AL; Florida anticipated	New subsidiaries formed in Q4 setup (MS, FL, AL); pursuing Tucson asset under contract (post‑Q3)	Building multi-state footprint

Management Commentary

“The Zoned Properties pipeline and capital engine has been turned on…we believe Zoned Properties will see a material increase in shareholder value as a result of the continued fueling of our pipeline and capital engine.” — Bryan McLaren, CEO .
“Over the past few years we have focused heavily on building a strong foundation of real estate services…We believe Zoned Properties is extremely well positioned to begin aggressively pursuing market share and to deploy capital into attractive real estate investment and acquisition targets.” — Bryan McLaren, CEO .
Q2 framing of strategy: “We are focused on investing in the growth and diversity of our top line revenue while maintaining positive cash flow from operations…Our full spectrum of real estate services have been intentionally positioned and designed to feed a strong pipeline of acquisition targets for our Investment Portfolio.” — Bryan McLaren, CEO .

Q&A Highlights

No earnings call or Q&A transcript was filed or available for Q3 2022; no management Q&A clarifications to report [ListDocuments showed no earnings-call-transcript; 8-K press release only] .

Estimates Context

Wall Street consensus (S&P Global) was not available in the company’s filings or press materials; no formal external consensus figures were cited for Q3’22, and the press release did not guide to revenue or EPS .
Given the absence of published consensus and no quantitative guidance, estimate revisions are unlikely until new acquisition announcements or subsequent filings provide incremental visibility .

Key Takeaways for Investors

Revenue inflected positively in Q3 with broad-based gains across rents and services; sequential recovery from Q2 suggests execution momentum as brokerage/advisory pipelines convert, while rent uplift from prior tenant investments supports Property Portfolio revenue .
The $4.5M credit facility is a near-term catalyst: expect incremental property acquisitions and potential NOI growth; watch for transaction announcements and redeployment pace as primary stock drivers .
Operating expense growth is purposeful (people, brokerage fees) to scale services; monitor operating leverage as services revenue expands and as acquired assets add stable NNN cash flow .
Tenant concentration remains the principal structural risk; diversification via new tenants/markets would be a medium‑term de‑risking milestone .
Liquidity position (cash + operating cash flow + facility) is adequate for near-term execution; limited capex needs given NNN model, but watch cash trends as acquisitions close .
No formal guidance and no analyst consensus mean the narrative (deal flow, lease economics, service wins) will drive sentiment short term; position sizing should reflect micro-cap liquidity and concentration risk .

Sources: SEC 8-K (press release & investor presentation) and 10-Qs as cited above; Q2’22 press release for sequential context .

Zoned Properties, Inc. (ZDPY)·Q3 2022 Earnings Summary