EX-99.2 3 ex99-2.htm EX-99.2

 

Exhibit 99.2

 

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

As of December 31, 2025

 

 

 

 

FORWARD-LOOKING STATEMENTS  

 

This presentation contains “forward-looking statements” within the meaning of the federal securities laws that involve risks and uncertainties, many of which are beyond our control. Our actual results could differ materially and adversely from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Quarterly Report on Form 10-Q. Forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, financial condition, liquidity, capital resources, cash flows, dividends, results of operations and other financial and operating information. When used in this presentation, the words “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “project,” “plan,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

 

The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to it and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described in the Annual Report on Form 10-K, as filed March 27, 2026 (“Annual Report”) and the Company’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof (“Quarterly Report”), changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in the “Risk Factors” section of the Annual Report and the Quarterly Report, many of which are beyond our control. Should one or more of these risks or uncertainties materialize or should any of our assumptions prove to be incorrect, our actual results may vary in material respects from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement made by us in this presentation speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.

 

 

 

 

COMPANY OVERVIEW  

 

 

Presidio Property Trust, Inc. (“Presidio” or the “Company”) was founded in 1999 as NetREIT
   
Presidio is an internally managed real estate company focused on commercial real estate opportunities in often overlooked and regionally dominant markets
   
The Company acquires, owns, and manages office and industrial real estate assets in markets with strong demographic and economic drivers with attractive going-in cap rates
   
Presidio’s commercial portfolio currently includes 10 commercial properties with a book value of approximately $72.0 million
   
In addition to its commercial real estate holdings, Presidio generates fees and rental income from affiliated entities, which manage and/or own a portfolio of model homes (1)

 

Corporate Information
Headquarters San Diego, CA
Founded 1999
Key Geographies CA, CO, MD, ND & TX
Employees 15

 

Portfolio Summary (Number / Square Footage)
Office 8 properties / 608,076 sqft.
Retail 1 properties / 10,500 sqft.
Industrial 1 property / 150,099 sqft.
Model Homes (1) 80 homes / 237,981 sqft

 

Portfolio Value & Debt
Book Value $108.6 million (2)
Existing Secured Debt $92.1 million

 

(1) The Company holds partial ownership interests in several entities which own model home properties
   
(2) Includes book value of model homes

 

 

 

 

 

 

COMMERCIAL PORTFOLIO  

 

   Date     Real estate assets and lease intangibles, net 
Property Name  Acquired  Location  December 31, 2025   December 31, 2024 
Genesis Plaza (1)  August 2010  San Diego, CA  $7,274,600   $7,363,571 
Dakota Center (2)  May 2011  Fargo, ND   4,861,267    8,154,951 
Grand Pacific Center (3)  March 2014  Bismarck, ND   8,082,202    8,413,926 
Arapahoe Center  December 2014  Centennial, CO   8,874,198    9,298,534 
Union Town Center (3)  December 2014  Colorado Springs, CO       8,922,943 
West Fargo Industrial  August 2015  Fargo, ND   6,404,774    6,599,953 
300 N.P.  August 2015  Fargo, ND   1,949,040    1,963,000 
Research Parkway (3)  August 2015  Colorado Springs, CO       2,220,284 
One Park Center  August 2015  Westminster, CO   5,740,065    5,580,950 
Shea Center II (4)  December 2015  Highlands Ranch, CO   16,249,498    18,820,370 
Mandolin (5)  August 2021  Houston, TX   4,508,851    4,600,562 
Baltimore  December 2021  Baltimore, MD   8,016,747    8,241,456 
Commercial properties         71,961,242    90,180,500 
Model Home properties (6)  2020 - 2025      36,688,462    37,416,000 
Total real estate assets and lease intangibles, net        $108,649,704   $127,596,500 

 

(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 December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. At December 31, 2025, the property was included in the real estate assets held for sale, net on the consolidated balance sheet. During July 2025, the lender approved a purchase offer from a third party for $5,125,000. In connection with the approved sale, we have impaired the property’s book value and recorded an impairment charge of approximately $3.5 million for the year ended December 31, 2025. The sale was completed on January 14, 2026.

   
(3)

During February 2025, Union Town Center and Research Parkway were sold to a single buyer for a combined total of approximately $15.9 million, net of selling costs, and recognized a net gain of approximately $4.5 million, net of closing costs.

   
(4)

During the year ended December 31, 2025, the Company impaired Shea Center II for a total of approximately $2.5 million after low property occupancy triggered a cash management event under the terms of the loan agreement. Subsequent to the year ended December 31, 2025, the Company received notice that the Company’s failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. The Company has received notification that the Shea Center II property governed by this agreement will be moved into receivership, which will fulfill its obligation for this non-recourse loan.

   
(5)

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.

   
(6) Includes Model Homes listed as held for sale as of December 31, 2025 and December 31, 2024. During the year ended December 31, 2025, we recorded impairment charges for model homes of approximately $0.3 million, which reflects the estimated sales prices for these specific model homes; for the same period in 2024, we recorded $0.4 million in impairment. The short hold period, less than two years, and the builder changing their model style after we purchased the homes, contributed to the lower-than-expected sales price. As of December 31, 2025, we had model home properties held for sale in Alabama, Arizona, Tennessee, and Texas. As of December 31, 2024, we had model home properties held for sale in Arizona, Florida, and Texas.

 

 

 

 

MODEL HOMES PORTFOLIO  

 

State  No. of Properties   Aggregate Square Feet   Approximate % of Square Feet   Current Base Annual Rent   Approximate % of Aggregate Annual Rent 
Alabama   10    23,835    10.0%  $347,064    10.0%
Arizona   1    3,474    1.5%   74,280    2.1%
Tennessee   2    5,534    2.3%   89,304    2.6%
Texas   67    205,138    86.2%   2,955,864    85.3%
Total   80    237,981    100.0%  $3,466,512    100.0%

 

 

 

 

CONSOLIDATED BALANCE SHEET  

 

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

 

   December 31,   December 31, 
   2025   2024 
         
ASSETS          
Real estate assets and lease intangibles:          
Land  $16,390,250   $15,983,323 
Buildings and improvements   101,878,107    102,862,977 
Tenant improvements   17,645,103    16,488,066 
Lease intangibles   3,467,798    3,776,654 
Real estate assets and lease intangibles held for investment, cost   139,381,258    139,111,020 
Accumulated depreciation and amortization   (37,536,809)   (33,700,262)
Real estate assets and lease intangibles held for investment, net   101,844,449    105,410,758 
Real estate assets held for sale, net   6,805,255    22,185,742 
Real estate assets, net   108,649,704    127,596,500 
Other assets:          
Cash, cash equivalents and restricted cash   7,422,359    8,036,496 
Deferred leasing costs, net   1,340,853    1,666,135 
Goodwill   1,317,000    1,389,000 
Investment in Conduit Pharmaceuticals marketable securities (see Notes 2 & 9)   3,900    206,177 
Deferred tax asset   223,388    298,645 
Other assets, net (see Note 6)   3,095,670    3,376,697 
Total other assets   13,403,170    14,973,150 
TOTAL ASSETS (1)  $122,052,874   $142,569,650 
LIABILITIES AND EQUITY          
Liabilities:          
Mortgage notes payable, net  $81,936,586   $80,977,448 
Mortgage notes payable related to properties held for sale, net   10,137,781    21,116,646 
Mortgage notes payable, total net   92,074,367    102,094,094 
Accounts payable and accrued liabilities   3,302,187    3,290,170 
Accrued real estate taxes   1,785,029    1,972,477 
Dividends payable   190,220    194,784 
Lease liability, net   40,108    64,345 
Below-market leases, net   3,316    8,625 
Total liabilities   97,395,227    107,624,495 
           
Commitments and contingencies (see Note 10)          
Equity:          
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 973,736 shares issued and outstanding (liquidation preference $25.00 per share) as of December 31, 2025 and 997,082 shares issued and outstanding as of December 31, 2024   9,737    9,971 
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 1,313,832 shares and 1,283,432 shares were issued and outstanding at December 31, 2025 and December 31, 2024, respectively   13,142    128,343 
Additional paid-in capital   186,762,388    185,770,842 
Dividends and accumulated losses   (169,945,302)   (159,374,010)
Total stockholders’ equity before noncontrolling interest   16,839,965    26,535,146 
Noncontrolling interest   7,817,682    8,410,009 
Total equity   24,657,647    34,945,155 
TOTAL LIABILITIES AND EQUITY  $122,052,874   $142,569,650 

 

 

 

 

CONSOLIDATED STATEMENT OF OPERATIONS  

  

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

 

   For the Year Ended December 31, 
   2025   2024 
Revenues:        
Rental income  $16,470,918   $18,523,813 
Fees and other income   343,790    401,462 
Total revenue   16,814,708    18,925,275 
Costs and expenses:          
Rental operating costs   6,158,052    6,256,077 
General and administrative   5,704,830    7,526,675 
Depreciation and amortization   4,862,267    5,515,518 
Impairment of goodwill and real estate assets   6,443,437    1,969,311 
Total costs and expenses   23,168,586    21,267,581 
Other income (expense):          
Interest expense - mortgage notes   (6,050,437)   (6,050,196)
Interest and other income, net   20,881    (151,356)
Gain on sales of real estate, net   5,444,792    3,426,572 
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)   (188,287)   (17,925,723)
Income tax (expense) benefit   (463,170)   (60,855)
Total loss, net   (1,236,221)   (20,761,558)
Net loss:   (7,590,099)   (23,103,864)
Less: Income attributable to noncontrolling interests   (685,586)   (2,524,665)
Net loss attributable to Presidio Property Trust, Inc. stockholders  $(8,275,685)  $(25,628,529)
Less: Preferred Stock Series D dividends   (2,295,607)   (2,236,696)
Net loss attributable to Presidio Property Trust, Inc. common stockholders  $(10,571,292)  $(27,865,225)
           
Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:          
Basic & Diluted  $(8.65)  $(22.50)
           
Weighted average number of common shares outstanding - basic & dilutive   1,221,413    1,238,659 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS  

 

Presidio Property Trust, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

   For the Year Ended December 31, 
   2025   2024 
Cash flows from operating activities:          
Net loss  $(7,590,099)   (23,103,864)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation and amortization   4,862,267    5,515,518 
Stock compensation   1,138,585    1,379,080 
Gain on sale of real estate assets, net   (5,444,792)   (3,426,572)
Employee Bonuses paid with CDT stock       172,421 
Net loss in Conduit Pharmaceuticals fair value marketable securities   188,287    17,925,723 
Net loss (gain) in fair value marketable securities       560 
Impairment of goodwill and real estate assets   6,443,437    1,969,311 
Amortization of financing costs   281,245    351,291 
Amortization of below-market leases   (4,753)   (4,641)
Straight-line rent adjustment   261,483    (152,722)
Changes in operating assets and liabilities:          
Other assets   355,913    82,575 
Deferred tax asset   75,257    48,117 
Accounts payable and accrued liabilities   186,636    (1,001,301)
Deferred leasing costs   (148,148)   (502,946)
Accrued real estate taxes   (187,448)   19,390 
Net cash provided by (used in) operating activities   417,870    (728,060)
Cash flows from investing activities:          
Real estate acquisitions   (9,444,465)   (9,729,351)
Additions to buildings and tenant improvements   (2,703,012)   (2,273,726)
Investment in marketable securities       (2,362)
Proceeds from sale of marketable securities   13,990    105,206 
Proceeds from sales of real estate, net   25,625,377    24,767,052 
Net cash provided by investing activities   13,491,890    12,866,819 
Cash flows from financing activities:          
Proceeds from mortgage notes payable, net of issuance costs   18,942,396    22,272,291 
Payment of debt issuance costs   (424,002)   (335,724)
Repayment of mortgage notes payable   (28,862,783)   (27,897,127)
Payment of deferred offering costs   (343,514)    
Distributions to noncontrolling interests   (1,277,913)   (3,629,964)
Contributions from noncontrolling interests       200,000 
Issuance of Series A Common Stock, net of offering costs   1,667,120     
Issuance of Series D Preferred Stock, net of offering costs       1,195,855 
Repurchase of Series A Common Stock, at cost   (1,585,091)   (140,416)
Repurchase of Series D Preferred Stock, at cost   (344,503)   (40,910)
Dividends paid to Series D Preferred Stockholders   (2,295,607)   (2,236,696)
Net cash used in financing activities   (14,523,897)   (10,612,691)
Net (decrease) increase in cash equivalents and restricted cash   (614,137)   1,526,068 
Cash, cash equivalents and restricted cash - beginning of period   8,036,496    6,510,428 
   $7,422,359   $8,036,496 
Supplemental disclosure of cash flow information:          
Interest paid-mortgage notes payable  $5,906,234   $5,371,017 
Income taxes paid  $78,848   $46,511 
Non-cash investing activities:          
Paid building and tenant improvements from prior year  $(207,847)  $(295,567)
Private warrants from Conduit Pharmaceuticals  $   $642,600 
Non-cash financing activities:          
Unpaid deferred offering costs  $6,589   $ 
Payment of accrued bonus to ex-CFO with CDT stock  $   $124,357 
Distribution of CDT stock to employees  $   $172,421 
Unpaid building and tenant improvements  $361,261   $207,847 
Dividends payable - Preferred Stock Series D  $190,220   $194,784 

 

 

 

 

EBITDAre RECONCILIATION  

 

  

For the Three Months

Ended December 31,

  

For the Year

Ended December 31,

 
   2025   2024   2025   2024 
Net loss attributable to Presidio Property Trust, Inc. common stockholders  $(4,544,421)  $(3,064,694)  $(10,571,292)  $(27,865,225)
Adjustments                    
Interest Expense   1,563,022    1,535,617    6,050,437    6,050,196 
Depreciation and Amortization   1,169,588    1,356,338    4,857,515    5,510,877 
Asset Impairment   2,016,192    1,075,372    6,443,437    1,969,311 
Net gain on sale of real estate   (366,490)   (235,423)   (5,444,792)   (3,426,572)
Net change in marketable securities   3,615    104,287    188,287    17,926,283 
Income Taxes   449,541    (106,642)   463,170    60,855 
                     
EBITDAre  $291,047   $664,855   $1,986,762   $225,725 

 

 

 

 

FFO AND CORE FFO RECONCILIATION  

  

  

For the three months

Ended December 31,

  

For the Year

Ended December 31,

 
   2025   2024   2025   2024 
Net loss attributable to Presidio Property Trust, Inc. common stockholders  $(4,544,421)  $(3,064,694)  $(10,571,292)  $(27,865,225)
Adjustments:                    
Income attributable to noncontrolling interests   339,483    196,279    685,586    2,524,665 
Depreciation and amortization   1,170,832    1,357,248    4,862,267    5,515,518 
Amortization of above and below market leases, net   (1,244)   (910)   (4,752)   (4,641)
Impairment of real estate assets   2,016,192    1,075,372    6,443,437    1,969,311 
Net change in marketable securities   3,615    104,287    188,287    17,926,283 
Gain on sale of real estate assets, net   (366,490)   (235,423)   (5,444,792)   (3,426,572)
FFO  $(1,382,033)  $(567,841)  $(3,841,259)  $(3,360,661)
Restricted stock compensation   306,762    147,031    1,138,585    1,379,080 
Cost associated with Zuma Capital Management               565,534 
Core FFO  $(1,075,271)  $(420,810)  $(2,702,674)  $(1,416,047)
                     
Weighted average number of common shares outstanding - basic and diluted   1,234,884    1,234,727    1,221,413    1,238,659 
                     
Core FFO / Wgt Avg Share  $(0.87)  $(0.34)  $(2.21)  $(1.14)
                     
Quarterly Dividends / Share  $   $   $   $ 

 

 

 

 

SEGMENT DATA  

 

The following tables compare the Company’s segment activity and NOI and adjusted NOI for Model Home income to its results of operations and financial position and the Company’s segment activity and to its results of GAAP operations and financial position for the year ended December 31, 2025. The information for Corporate and Other are presented to reconcile back to the consolidated statement of operations, but is not considered a reportable segment.

 

   For the Year Ended December 31, 2025 
   Retail   Office/Industrial   Model Homes   Corporate and Other   Total 
                          
Rental revenue  $487,161   $9,585,303   $3,952,162   $   $14,024,626 
Recovery revenue   56,439    2,389,853            2,446,292 
Other operating revenue   400    257,414    5,776    80,200    343,790 
Total revenues   544,000    12,232,570    3,957,938    80,200    16,814,708 
                          
Rental operating costs   115,047    6,423,862    212,817    (593,674)   6,158,052 
Net Operating Income (NOI)   428,953    5,808,708    3,745,121    673,874    10,656,656 
                          
Gain on Sale - Model Homes           950,434        950,434 
Impairment of Model Homes           (339,609)       (339,609)
                          
Adjusted NOI  $428,953   $5,808,708   $4,355,946   $673,874   $11,267,481 

 

   For the Year Ended December 31, 2025 
   Retail   Office/Industrial   Model Homes   Corporate and Other   Total 
Revenues:                         
Rental income  $543,600   $11,975,156   $3,952,162   $   $16,470,918 
Fees and other income   400    257,414    5,776    80,200    343,790 
Total revenue   544,000    12,232,570    3,957,938    80,200    16,814,708 
Costs and expenses:                         
Rental operating costs   115,047    6,423,862    212,817    (593,674)   6,158,052 
General and administrative       19,195    813,705    4,871,930    5,704,830 
Depreciation and amortization   100,472    3,910,547    846,818    4,430    4,862,267 
Impairment of goodwill and real estate assets       6,031,828    339,609    72,000    6,443,437 
Total costs and expenses   215,519    16,385,432    2,212,949    4,354,686    23,168,586 
Other income (expense):                         
Interest expense - mortgage notes   (276,961)   (3,757,328)   (2,010,791)   (5,357)   (6,050,437)
Interest and other income, net           (13,735)   34,616    20,881 
Net loss in Conduit Pharmaceuticals marketable securities (see footnote 9)               (188,287)   (188,287)
Gain on sales of real estate, net   4,494,358        950,434        5,444,792 
Income tax (expense) benefit       (9,600)   (60,875)   (392,695)   (463,170)
Total other income, net   4,217,397    (3,766,928)   (1,134,967)   (551,723)   (1,236,221)
Net income (loss)   4,545,878    (7,919,790)   610,022    (4,826,209)   (7,590,099)
Less: Income attributable to noncontrolling interests       (47,710)   (637,876)       (685,586)
Net income (loss) attributable to Presidio Property Trust, Inc. stockholders  $4,545,878   $(7,967,500)  $(27,854)  $(4,826,209)  $(8,275,685)

 

 

 

 

SEGMENT DATA (continued)  

 

   December 31,   December 31, 
Assets by Reportable Segment:  2025   2024 
Office/Industrial Properties:          
Land, buildings and improvements, net (1)  $67,445,290   $74,425,180 
Total assets (2)  $68,980,087   $76,292,662 
Model Home Properties:          
Land, buildings and improvements, net (1)  $36,688,462   $37,416,000 
Total assets (2)  $37,301,777   $38,166,964 
Retail Properties:          
Land, buildings and improvements, net (1)  $4,508,851   $15,743,789 
Total assets (2)  $4,669,852   $16,673,605 
Reconciliation to Total Assets:          
Total assets for reportable segments  $110,951,716   $131,133,231 
Corporate and other assets:          
Cash, cash equivalents and restricted cash  $173,621    564,922 
Other assets, net  $10,927,537    10,871,497 
Total Assets  $122,052,874   $142,569,650 

 

(1) Includes lease intangibles.

 

(2) Includes land, buildings and improvements, cash, cash equivalents, and restricted cash, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis.

 

 

 

 

DEFINITIONS – NON-GAAP MEASUREMENTS  

 

EBITDAre - EBITDAre is defined by NAREIT as earnings before interest, taxes, depreciation, and amortization, gain or loss on disposal of depreciated assets, and impairment write-offs.

 

Funds from Operations (FFO) – The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO, a non-GAAP measure, as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.

 

However, because FFO excludes depreciation and amortization as well as the changes in the value of the Company’s properties that result from use or market conditions, each of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

 

Core Funds from Operations (Core FFO) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items. We exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration, non-cash warrant dividends, other non-recuring expenses, and the amortization of stock-based compensation.

 

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.