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May 16, 2022, 7:04 p.m. EDT

Presidio Property Trust, Inc. Announces Earnings for the First Quarter Ended March 31, 2022

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Definitions

Non-GAAP Financial Measures

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 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 also 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 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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur. Except as required by law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the " Risk Factors" section of the Company's documents filed with the SEC, copies of which are available on the SEC's website, www.sec.gov .

Investor Relations Contacts:
Presidio Property Trust, Inc.
Lowell Hartkorn, Investor Relations
LHartkorn@presidiopt.com
Telephone: (760) 471-8536 x1244

Presidio Property Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets


March 31, December 31,

2022 2021

(Unaudited)
ASSETS

Real estate assets and lease intangibles:

Land $ 18,065,246 $ 21,136,379
Buildings and improvements 114,976,059 119,224,375
Tenant improvements 11,884,924 12,752,518
Lease intangibles 4,110,139 4,110,139
Real estate assets and lease intangibles held for investment, cost 149,036,368 157,223,411
Accumulated depreciation and amortization (29,468,491 ) (30,589,969 )
Real estate assets and lease intangibles held for investment, net 119,567,877 126,633,442
Real estate assets held for sale, net 7,282,326 11,431,494
Real estate assets, net 126,850,203 138,064,936
Cash, cash equivalents and restricted cash 22,494,595 14,702,089
Deferred leasing costs, net 1,115,295 1,348,234
Goodwill 2,423,000 2,423,000
Other assets, net 3,992,267 4,658,504
Investments held in Trust (see Notes 2 & 11) 134,905,182 -
TOTAL ASSETS $ 291,780,542 $ 161,196,763
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 88,658,485 $ 87,324,319
Mortgage notes payable related to properties held for sale, net 4,180,971 1,535,513
Mortgage notes payable, total net 92,839,456 88,859,832
Note payable, net - -
Accounts payable and accrued liabilities 3,480,915 4,569,537
Accounts payable and accrued liabilities of SPAC (see Notes 2 & 11) 4,703,232 15,499
Accrued real estate taxes 1,405,957 1,940,913
Dividends payable preferred stock 179,685 179,685
Lease liability, net 68,573 75,547
Below-market leases, net 59,407 73,130
Total liabilities 102,737,225 95,714,143
Commitments and contingencies (Note 9 & 11)
SPAC Class A common stock subject to possible redemption; 13,225,000 shares (at $10.20 per share), net of issuance cost of $6.4 million 128,534,952 -
Equity:
Series D Preferred Stock, $0.01 par value per share; 1,000,000 shares authorized; 920,000 shares issued and outstanding (liquidation preference $25.00 per share) as of March 31, 2022 and December 31, 2021, respectively 9,200 9,200
Series A Common Stock, $0.01 par value per share, shares authorized: 100,000,000; 11,795,970 shares and 11,599,720 shares were issued and outstanding at March 31, 2022 and December 31, 2021, respectively 117,960 115,997
Additional paid-in capital 183,231,322 186,492,012
Dividends and accumulated losses (133,613,228 ) (130,947,434 )
Total stockholders' equity before noncontrolling interest 49,745,254 55,669,775
Noncontrolling interest 10,763,111 9,812,845
Total equity 60,508,365 65,482,620
TOTAL LIABILITIES AND EQUITY $ 291,780,542 $ 161,196,763

Presidio Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)


For the Three Months Ended March 31,

2022 2021
Revenues:

Rental income $ 4,452,318 $ 5,477,223
Fees and other income 120,823 191,531
Total revenue 4,573,141 5,668,754
Costs and expenses:
Rental operating costs 1,583,473 1,838,923
General and administrative 1,583,691 1,537,265
Depreciation and amortization 1,339,225 1,428,934
Impairment of real estate assets - 300,000
Total costs and expenses 4,506,389 5,105,122
Other income (expense):
Interest expense-mortgage notes (1,017,713 ) (1,305,021 )
Interest expense - note payable - (279,373 )
Interest and other (expense), net 73,605 (32,785 )
Gain on sales of real estate, net 1,522,785 (1,161,328 )
Gain on extinguishment of government debt - 10,000
Income tax expense (265,239 ) (50,199 )
Total other income (expense), net 313,438 (2,818,706 )
Net income (loss) 380,190 (2,255,074 )
Less: Income attributable to noncontrolling interests (1,208,676 ) (406,608 )
Net loss attributable to Presidio Property Trust, Inc. stockholders $ (828,486 ) $ (2,661,682 )
Less: Preferred Stock Series D dividends (539,056 ) -
Less: Series A Warrant dividend (2,456,512 ) -
Net loss attributable to Presidio Property Trust, Inc. common stockholders $ (3,824,053 ) $ (2,661,682 )

Net loss per share attributable to Presidio Property Trust, Inc. common stockholders:
Basic & Diluted $ (0.32 ) $ (0.28 )

Weighted average number of common shares outstanding - basic & diluted 11,773,649 9,508,363

Presidio Property Trust, Inc. and Subsidiaries
Reconciliation of Net Income to FFO and Core FFO
(Unaudited)


For the Three Months Ended March 31,

2022 2021
Net (loss) income attributable to Presidio Property Trust, Inc. common stockholders $ (3,824,053 ) $ (2,661,682 )
Adjustments:
Income attributable to noncontrolling interests 1,208,676 406,608
Depreciation and amortization 1,339,225 1,428,934
Amortization of above and below market leases, net (13,722 ) (1,010 )
Impairment of real estate assets - 300,000
Loss (Gain) on sale of real estate assets (1,522,785 ) 1,161,328
FFO $ (2,812,660 ) $ 634,178
Stock Based Compensation 280,981 301,547

2,456,512 -
Core FFO $ (75,167 ) $ 935,725

Weighted average number of common shares outstanding - basic 11,773,649 9,508,363

Core FFO / Wgt Avg Share $ (0.01 ) $ 0.10

SOURCE: Presidio Property Trust

COMTEX_407294665/2457/2022-05-16T19:03:54

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

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