Mar 31, 2022 (ACCESSWIRE via COMTEX) -- SAN DIEGO, CA / ACCESSWIRE / March 31, 2022 / Presidio Property Trust, Inc. /zigman2/quotes/219955796/composite SQFT -0.63% /zigman2/quotes/227285037/composite SQFTP +6.00% (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for the year ended December 31, 2021.
"We are pleased to report our 2021 earnings, continuing the strong rent collections that we saw throughout 2020 and the first parts of 2021," said Jack Heilbron, the Company's President and Chief Executive Officer. "We also took advantage of strong market conditions to sell three office properties and one retail property, as well as 44 model homes. We repositioned the commercial portfolio with our Houston day care and Baltimore medical office acquisitions, in addition to buying 18 new model homes during the year."
"50 office, retail, and industrial leases were signed in 2021, with 18 new tenants and 32 existing tenant renewals," noted Gary Katz, the Company's Chief Investment Officer. "We expect to see solid leasing demand continue in the markets where our properties are located in the coming year."
Year Ended December 31, 2021 Financial Results
Net loss attributable to the Company's common stockholders for 2021 was approximately $4.8 million, or $0.46 basic and diluted share, compared to a net loss of approximately $7.7 million, or $0.85 per basic and diluted share for 2020. The improvement in 2021 in net income attributable to the Company's common stockholders was primarily the result of:
A decline in 2021 interest expense of approximately $4 million, or 45%, compared to 2020, due to property sales and the elimination of mezzanine debt
A decline in 2021 rental operating costs of approximately $2.6 million or 30%, compared to 2020 due to property sales
A decline in 2021 general and administrative expenses of approximately $566,000, or 11, compared to 2020
Core FFO (non-GAAP) for the year ended December 31, 2021 increased by approximately $1 million to $2.5 million compared to approximately $1.5 million for the year ended December 31, 2020. A reconciliation of Core FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. However, because Core 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 has real economic effects and could materially impact the Company's results from operations, the utility of Core FFO as a measure of the Company's performance is limited.
Acquisitions and Dispositions during 2021
Waterman Plaza, which was sold on January 28, 2021 for approximately $3.5 million and the Company recognized a loss of approximately $0.2 million.
Garden Gateway, which was sold on February 19, 2021 for approximately $11.2 million and the Company recognized a loss of approximately $1.4 million.
Highland Court, which was sold on May 20, 2021 for approximately $10.23 million and the Company recognized a loss of approximately $1.6 million.
Executive Office Park, which was sold on May 21, 2021, 2021 for approximately $8.1 million and the Company recognized a gain of approximately $2.5 million.
During 2021, the Company acquired 28 model homes for approximately $8.4 million. The purchase price was paid through cash payments of approximately $2.7 million and mortgage notes of approximately $5.7 million.
During 2021, the Company disposed of 46 model homes for approximately $18.1 million and recognized a gain of approximately $1.6 million.
Earnings Conference Call
The Company will hold a conference call at 1:30 pm Pacific Time on March 31, 2022, to discuss the Company's financial results. A supplemental financial package to accompany the discussion of the results will be posted on the Company's website www.presidiopt.com .
To listen to the conference call over the Internet, and to be able to submit questions to the Company, click on the link under "Presentations" in the "Investor" section of the Company's website at www.presidiopt.com
Telephone Conference Call
Entry code: 849173
To listen to the call by phone, participants can reference the Presidio Property Q3 2021 Earnings Call. Please dial in at least 10 minutes before the scheduled start time.
Conference Call Replay
Toll Free: 877-481-4010
Replay Passcode: 44721
The telephone replay of the call will be available later in the day on March 31, 2022, continuing through April 14, 2022. A replay will also be available at the webcast link under "Presentations" in the "Investor" section of the Company's website until March 31, 2023.
About Presidio Property Trust