May 16, 2022 (ACCESSWIRE via COMTEX) -- SAN DIEGO, CA / ACCESSWIRE / May 16, 2022 / Presidio Property Trust, Inc. /zigman2/quotes/219955796/composite SQFT -3.35% /zigman2/quotes/227285037/composite SQFTP -0.63% (the "Company"), an internally managed, diversified real estate investment trust ("REIT"), today reported earnings for its first quarter ended March 31, 2022. All first quarter financial measures referenced herein are unaudited.
"We are pleased to report our first quarter earnings, continuing the strong performance that we saw throughout 2021," said Jack Heilbron, the Company's President and Chief Executive Officer. "In the first quarter of 2022, we collected 92% of total tenant billings, including 100% collections among our retail tenants. And just last week, we took advantage of our cash position, to pay off our loan on our 300 NP office property in Fargo, North Dakota in full, prudently deleveraging where it makes sense. That was our last commercial property loan maturing in 2022, with the next commercial property loan not maturing until the middle of 2024."
"15 office, retail, and industrial leases were signed in the first quarter of 2022, with 7 new tenants and 8 existing tenant renewals," noted Gary Katz, the Company's Chief Investment Officer. "We saw continued leasing demand in the first quarter, in all our geographies, among a variety of tenants, including financial services and wireless tenants."
First Quarter Ended March 31, 2022 Financial Results
Net loss attributable to the Company's common stockholders for the three months ended March 31, 2022, was approximately $(3.8 million), or $(0.32) per basic and diluted share, compared to a net loss of $(2.6 million), or $(0.28) per basic and diluted share for the three months ended March 31, 2021. The change in net income attributable to the Company's common stockholders was a result of:
|•||A decrease in interest expense for the first quarter of 2022, after the sale of commercial properties in 2021 and payoff of the Polar Note, and|
|•||A gain on sale of real estate of 11 model homes sold in the first quarter of 2022, offset by a small loss on the sale of World Plaza|
|•||Offset by the preferred stock Series D dividends totaling approximately $0.5 million in Q1 2022, not experienced in Q1 2021.|
|•||A one-time Series A Warrant Divided totaling approximately $2.4 million granted in Q1 2022.|
FFO (non-GAAP) for the three months ended March 31, 2022, decreased by approximately $1 million to $(75,167) from $935,725 to the three months ended March 31, 2021, due primarily to the difference in loss (gain) on sale of real estate assets. A reconciliation of FFO to net income, the most directly comparable GAAP financial measure, is attached to this press release. 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.
Acquisitions and Dispositions for the first quarter of 2022
World Plaza, which was sold on March 11, 2022, for approximately $10.0 million and the Company recognized a loss of approximately $0.3 million.
The Company disposed of 11 model homes for approximately $5.6 million and recognized a gain of approximately $1.8 million.
Dispositions during the first quarter of 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.
The Company disposed of 12 model homes for approximately $4.9 million and recognized a gain of approximately $0.4 million.
Dividends paid during the first quarter of 2022:
During the first quarter of 2022, the Company paid a dividend of $0.105 per share to shareholders of Series A common stock
During the first quarter of 2022, the Company paid three dividends in the total amount of $0.586 per share to shareholders of Series D preferred stock
About Presidio Property Trust