Presidio Property Trust Reports Q2 Earnings, 90% Leasing Retention Rate.

Presidio Property Trust reported Q2 2025 earnings, with leasing retention rates at 90% year-to-date. CEO Jack Heilbron praised the team's performance, noting positive leasing retention rates and stable space requirements for existing tenants. The company is well-positioned for the second half of 2025.

Presidio Property Trust, Inc. (Nasdaq: SQFT) reported its earnings for the second quarter ended June 30, 2025, with a net loss of approximately $5.9 million, or $5.13 per share. This represents a significant improvement from the previous year's net loss of approximately $12.4 million, or $9.97 per share [1].

The company's CEO, Jack Heilbron, expressed pride in the team's performance and highlighted positive leasing retention rates, with approximately 90% of tenants renewing their leases year-to-date. The company's Chief Investment Officer, Gary Katz, noted that existing tenants have stable space requirements and, in some cases, have expanded their spaces. Despite challenges in the residential real estate market, the company's resale portfolio has shown overall positive performance [1].

Total revenues for the quarter were approximately $4.4 million, compared to $4.6 million in the same period last year. This decrease is attributed to the sale of two commercial properties on February 7, 2025. The company's net real estate assets, including 87 model homes, stood at approximately $114.6 million as of June 30, 2025, compared to $130.9 million at the same time last year. The average number of model homes held during the period was 85, compared to 84 last year [1].

General and administrative expenses (G&A) for the quarter were approximately $1.2 million, a decrease from $2.2 million in the same period last year. This reduction was partially due to the absence of consulting fees and additional legal fees related to Zuma Capital Management, LLC in 2024. Additionally, the company reduced its accrual for board fees and income tax preparation [1].

The company sold seven model homes for approximately $3.1 million, net of sales costs, and recognized a gain of approximately $323,359. However, the company also recorded impairment charges of approximately $0.1 million related to model homes and an additional impairment charge of $3.3 million for the Dakota Center property, expected to be sold during the third quarter of 2025 [1].

Interest expense, including amortization of deferred finance charges, remained approximately $1.5 million for the quarter, with a weighted average interest rate of 5.90% on outstanding debt. Mortgage notes payable decreased to approximately $95.4 million, down from $102.0 million last year [1].

FFO (Funds from Operations), a non-GAAP measure, totaled approximately $(409,437) for the quarter, compared to $(1.3 million) in the same period last year. Core FFO, another non-GAAP measure, increased by approximately $0.3 million to $(94,563) [1].

The company acquired 10 model homes for approximately $5.1 million during the quarter, with the purchase price paid through cash and mortgage notes. It also sold seven model homes for approximately $3.1 million, recognizing a gain of approximately $0.3 million [1].

Presidio Property Trust is well-positioned for the second half of 2025, with strong leasing retention rates and a focus on capturing value and reducing risk in the challenging market [1].

References:
[1] https://www.morningstar.com/news/accesswire/1061169msn/presidio-property-trust-inc-announces-earnings-for-the-second-quarter-ended-june-30-2025