Presidio Property Trust, Inc.
For the period ended Dec 31, 2024. Filed Mar 31, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Mar 31, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 2. PROPERTIES
General Information
We invest in a diverse multi-tenant portfolio of real estate assets primarily consisting of office/industrial, retail, and model home properties located primarily in the western United States. As of December 31, 2024, we owned or had an equity interest in nine office/industrial buildings totaling approximately 758,175 rentable square feet and three retail centers totaling approximately 65,242 rentable square feet. In addition, through our Model Home subsidiary and our investments in six limited partnerships and one corporation, we own a total of 78 Model Home Properties located in three states, totaling approximately 236,955 square feet. Of the 78 Model Home Properties in our portfolio, 55 of them are wholly owned by the Company through NetREIT Model Homes, Inc. We directly manage the operations and leasing of our properties. Substantially all of our revenues consist of base rents received under leases that generally have terms that range from one to five years. The majority of our existing leases as of December 31, 2024 contain contractual rent increases that provide for increases in the base rental payments. Our tenants consist of local, regional and national businesses. Our properties generally attract a mix of diversified tenants creating lower risk in periods of economic fluctuations. Our largest tenant represented approximately 6.07% of total revenues for the year ended December 31, 2024.
Geographic Diversification Table
The following table shows a list of properties we owned as of December 31, 2024, grouped by the state where each of our investments is located.
Office/Industrial and Retail Properties:
| State | No. of Properties | Aggregate Square Feet | Approximate % of Square Feet | Current Base Annual Rent | Approximate % of Aggregate Annual Rent |
|---|---|---|---|---|---|
| California | 1 | 57,807 | 7.0% | $1,542,066 | 12.9% |
| Colorado | 5 | 324,245 | 39.4% | 5,766,166 | 48.2% |
| Maryland | 1 | 31,752 | 3.9% | 724,453 | 6.1% |
| North Dakota | 4 | 399,113 | 48.4% | 3,565,621 | 29.9% |
| Texas | 1 | 10,500 | 1.3% | 342,692 | 2.9% |
| Total | 12 | 823,417 | 100.0% | $11,940,998 | 100.0% |
Model Home Properties:
| State | No. of Properties | Aggregate Square Feet | Approximate % of Square Feet | Current Base Annual Rent | Approximate % of Aggregate Annual Rent |
|---|---|---|---|---|---|
| Arizona | 2 | 6,822 | 2.9% | $149,196 | 4.4% |
| Florida | 3 | 8,199 | 3.4% | 136,812 | 4.1% |
| Texas | 73 | 221,934 | 93.7% | 3,086,580 | 91.5% |
| Total | 78 | 236,955 | 100.0% | $3,372,588 | 100.0% |
The following table summarizes information relating to our properties (excluding model homes) at December 31, 2024:
Property Summary
| ($ in000's) Property Location · Sq., Ft. · Date Acquired · Year Property Constructed · Purchase Price · Occupancy · Percent Ownership · Mortgage On property | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office/Industrial Properties: | ||||||||||||
| Genesis Plaza, San Diego, CA (1) | 57,807 | 08/10 | 1989 | $10,000 | 95.6% | 92.0% | $5,937 | |||||
| Dakota Center, Fargo, ND (2) | 119,554 | 05/11 | 1982 | 9,575 | 46.1% | 100.0% | 9,197 | |||||
| Grand Pacific Center, Bismarck, ND (3) | 94,943 | 03/14 | 1976 | 5,350 | 88.6% | 100.0% | 5,471 | |||||
| Arapahoe Center, Colorado Springs, CO | 79,023 | 12/14 | 2000 | 11,850 | 100.0% | 100.0% | 7,426 | |||||
| West Fargo Industrial, West Fargo, ND | 150,099 | 08/15 | 1998/2005 | 7,900 | 97.2% | 100.0% | 3,923 | |||||
| 300 N.P., West Fargo, ND | 34,517 | 08/15 | 1922 | 3,850 | 66.4% | 100.0% | - | |||||
| One Park Centre, Westminster CO (5) | 69,174 | 08/15 | 1983 | 9,150 | 85.7% | 100.0% | 6,044 | |||||
| Shea Center II, Highlands Ranch, CO (6) | 121,306 | 12/15 | 2000 | 25,325 | 68.9% | 100.0% | 16,951 | |||||
| Baltimore, Baltimore, MD | 31,752 | 12/21 | 2006 | 8,892 | 100.0% | 100.0% | 5,670 | |||||
| Total Office/Industrial Properties | 758,175 | $91,892 | 81.0% | $60,619 | ||||||||
| Retail Properties: | ||||||||||||
| Union Town Center, Colorado Springs, CO (4) | 44,042 | 12/14 | 2003 | 11,212 | 100.0% | 100.0% | 7,870 | |||||
| Research Parkway, Colorado Springs, CO (4) | 10,700 | 08/15 | 2003 | 2,850 | 88.8% | 100.0% | 1,589 | |||||
| Mandolin, Houston, TX (7) | 10,500 | 08/21 | 2021 | 4,892 | 100.0% | 61.3% | 3,573 | |||||
| Total Retail Properties | 65,242 | $18,954 | 86.2% | $13,032 | ||||||||
| (1) | Genesis Plaza is owned by two tenants-in-common, NetREIT Genesis and NetREIT Genessis II, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 92.0%, based on our ownership of each entity. We have 100% ownership of NetREIT Genesis and 81.5% ownership of NetREIT Genesis II, and we have control of both entities. During July 2024, the Company completed a minority ownership conversion option as result of a death in a noncontrolling trust within NetREIT Genesis II. The Company issued the trust 86,232 shares of SQFT Series A Common Stock in exchange for their 36.4% ownership in NetREIT Genesis II, as per the original exchange agreement. |
| (2) | The non-recourse loan on the Dakota Center property matured on July 6, 2024. During October 2024, management has agreed with the lender to sell the property to settle the loan balance. Due to the uncertainties in the Fargo market, we have impaired the property’s book value and recorded an impairment charge of approximately $0.7 million as of September 30, 2024. During December 2024, the lender had agreed on the broker the Company would use to sell the property to settle the non-recourse debt. As of December 31, 2024, the property was included in the real estate assets held for sale, net on the consolidated balance sheet. Any purchase offers will be subject to lender approval. |
| (3) | Grand Pacific Center, Bismarck, ND, was removed from held-for-sale after signing a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, and starting annualized rent of $532,736. KLJ Engineering moved into the building during December 2023, with rent that commenced on February 28, 2024. |
| (4) | As of September 30, 2024, Union Town Center and Research Parkway have been listed for sale, and included in the real estate assets held for sale, net on the consolidated balance sheet as of December 31, 2024. The sale of UTC and Research Parkway took place in February 2025, to a single buyer for a combined sales price of $16.95 million, and the Company recorded a combined gain of approximately $4.0 million. |
| (5) | During the year ended December 31, 2023, we recorded a $2.0 million impairment charge for One Park Center that reflects management’s revised estimate of the fair market value based on sales comparable of like properties in the same geographical area as well as an evaluation of future cash flows or an executed purchase sale agreement. No additional impairment was deemed necessary during the year ended December 31, 2024. |
| (6) | On December 31, 2022, the lease for our largest tenant, Halliburton, expired. Halliburton was located in our Shea Center II property in Colorado, and made up approximately $536,080 of our annual base rent. Halliburton did not renew the lease and we placed approximately $1.1 million in a reserve account with our lender to cover future mortgage payments, if necessary, none of which has been used as of December 31, 2023. Our management team is working to fill the 45,535 square foot space and has leased approximately 54% of the space as of February 2025 and has reviewed various proposals for the remaining 46%. |
| (7) | A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP. |
For the years ended December 31, 2024 and 2023, depreciation and amortization expense totaled approximately $5.5 million and $5.4 million, respectively.
Top Ten Tenants Physical Occupancy Table
The following table sets forth certain information with respect to our top 10 tenants at our Office/Industrial and Retail Properties.
| As of December 31, 2024 Tenant · Number of Leases · Annualized Base Rent · % of Total Annualized Base Rent | ||||
|---|---|---|---|---|
| John Hopkins University | 1 | 724,453 | 6.07% | |
| Finastra USA Corporation | 1 | 543,600 | 4.55% | |
| KLJ Engineering LLC | 1 | 536,080 | 4.49% | |
| MasTec North America, Inc. | 1 | 371,106 | 3.11% | |
| L&T Care LLC | 1 | 342,692 | 2.87% | |
| Wells Fargo Bank, NA | 1 | 300,838 | 2.52% | |
| Republic Indemnity of America | 1 | 278,831 | 2.34% | |
| Nova Financial & Investment Corporation | (1) | 1 | 275,071 | 2.30% |
| Meissner Commercial Real Estate Services | (2) | 1 | 270,015 | 2.26% |
| Fredrikson & Byron P.A. | 1 | 249,270 | 2.09% | |
| $3,891,956 | 32.60% | |||
| (1) | Nova Financial & Investment Corporation was subleasing to OnPoint Medical Group Holdings, LLC (“OnPoint”), until their lease expired in January 2025. Since October 2024, OnPoint had also been directly leasing a 2,543 square foot space in our Shea Center building. In January 2025, OnPoint took over 11,831 square foot space from Nova Financial & Investment Corporation, signing an additional 3-year lease for that space. |
| (2) | Genesis Plaza's occupancy at December 31, 2024 was at 95.6%. During the year, the Company invested approximately $74 thousand in building and tenant improvements for the property, expanded the space for Meissner and extended the term of their lease to 2035, and reduced the space used by the Company. On January 1, 2025, Meissner took possession of the expanded space and Genesis Plaza was 100% leased. |
Lease Expirations Tables
The following table sets forth lease expirations for our properties as of December 31, 2024, assuming that none of the tenants exercise their renewal options.
Office/Industrial and Retail Properties:
| Expiration Year · Number of Leases Expiring · Square Footage · Annual Rental From Lease · Percent of Total | |||||
|---|---|---|---|---|---|
| 2024 | (1) | 18 | 8,835 | $61,578 | 0.5% |
| 2025 | 34 | 113,028 | 1,922,087 | 16.1% | |
| 2026 | 36 | 219,532 | 3,397,567 | 28.5% | |
| 2027 | 21 | 69,488 | 1,237,116 | 10.4% | |
| 2028 | 21 | 82,363 | 1,717,719 | 14.4% | |
| 2029 | 14 | 50,770 | 1,065,589 | 8.9% | |
| Thereafter | 13 | 130,794 | 2,539,342 | 21.2% | |
| Totals | 157 | 674,810 | $11,940,998 | 100.0% | |
| (1) | Two of these leases expired on December 31, 2024 and were located in our One Park Centre property, and accounted for approximately 3% of One Park Centre's annual rent and totaled approximately 2,045 square feet. The remaining leases are mainly for month to month storage, parking and other miscellaneous space. |
Model Home Properties:
| Expiration Year (1) · Number of Leases Expiring · Square Footage · Annual Rental From Lease · Percent of Total | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | (2) | 5 | 12,164 | $157,440 | 4.6% | ||
| 2025 | 56 | 169,824 | 2,393,688 | 71.0% | |||
| 2026 | 17 | 54,967 | 821,460 | 24.4% | |||
| 78 | 236,955 | $3,372,588 | 100.0% | ||||
| (1) | These leases are subject to extensions by the home builder depending on sales of the total development. All model homes are sold at the end of the lease period. |
| (2) | These properties came off lease during 2024 and are listed as held for sale as of December 31, 2024. |
As of December 31, 2024 we had nine model homes listed for sale, and included in the real estate assets held for sale, net on the consolidated balance sheet as of December 31, 2024.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.